Holocaust survivors who travelled to England on the Kindertransport have been given a tax exemption on their recent 2,500 Euro compensation payment from the German government.
In a letter sent to the trustees of the Association of Jewish Refugees (AJR), the Financial Secretary to the Treasury Jesse Norman MP said the awards would not attract income tax or capital gains tax.
Norman said the payments “would be considered part of a recipient’s taxable estate for inheritance tax (IHT),” but that the Government “will be making legislative changes necessary to ensure these payments are not subject to IHT”.
AJR Trustee David Rothenberg thanked Norman for “this welcome confirmation” for more than 300 Kinder who have already received their reparation.
He added: “While no amount of money could ever compensate for what our members suffered, this modest gesture recognises their particular experience.”