More than 30,000 people in the UK were infected with HIV and hepatitis C after being given contaminated blood products in the 1970s and 1980s. The Infected Blood Inquiry published its final report last year, and the government has so far allocated £11.8bn in compensation. Due to the length of time that has passed, however, many of the people due compensation have since died.
At a special hearing of the inquiry last week, the inquiry’s chair, Sir Brian Langstaff heard only 106 people have received payments so far, with a further 54 receiving offers. About 140,000 victims, including bereaved parents, children, and siblings are still waiting for compensation.
The Association of Lifetime Lawyers (ALL) and STEP are now campaigning for legislation to stop HM Revenue and Customs seizing a sizeable proportion of the payments.
They explain that, while HMRC has pledged not to levy inheritance tax on the compensation, the payments are now going to deceased victims’ estates and will be taxed when passed on to someone else—a situation known as a ‘secondary transfer’.
Jade Gani, lawyer and spokesperson for ALL and STEP, said: ‘While working with a family that was affected by the infected blood scandal, I identified that they and others may now face a secondary injustice with an unfair and unexpected tax on their compensation.
‘We’re currently in talks with HMRC and are grateful for their ongoing engagement, responsiveness and proactive efforts in addressing the inheritance tax implications for families affected by the Infected Blood scandal.’
ALL, STEP and Ten Old Square chambers are working with HMRC to draft legislation to address the secondary transfer issue.
Gani said: We are encouraged by the progress being made so far, and are hopeful that legislative change will bring about a fair and compassionate resolution.’
