Budget 25: Chancellor scraps infected blood scandal IHT charge

Compensation payments exempt ‘regardless of the circumstances’

Isabel Baxter
clock • 2 min read

Chancellor Rachel Reeves has announced that all payments from the infected blood scandal scheme are exempt from inheritance tax (IHT).

In the chancellor's Autumn Budget 2025 speech in parliament today (26 November), she announced that she will exempt compensation payments for the infected blood scheme from IHT "regardless of the circumstances in which those payments are passed down". She said she allocated funding for compensation following the scandal last year and accused the Conservatives of failing to budget for it. "That is how we should be spending taxpayers' money," Reeves said on this in the speech. More than 30,000 people were infected with HIV and Hepatitis C after being given contaminated blood products...

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