Income Tax (Earnings and Pensions) Act 2003 section 642A

Netherlands Benefit Act for Victims of Persecution 1940-1945

Section 642A exempts from income tax any payments made under the Dutch Wet uitkeringen vervolgingsslachtoffers 1940-1945 (Wuv) scheme, which compensates victims of persecution during the Second World War.

• Pensions, annuities, allowances and any other payments made under the Dutch Wuv scheme are fully exempt from UK income tax from April 2016 onwards.
• The Wuv scheme provides payments to individuals who were victims of persecution in Europe or Asia during the Second World War and who have a qualifying connection to the Netherlands.
• The exemption brings the tax treatment of Wuv payments into line with equivalent payments made by the Federal Republic of Germany or Austria to victims of Nazi persecution.
• The change was prompted by an Upper Tribunal ruling in 2014 which found that taxing Dutch scheme payments differently from German or Austrian payments amounted to unlawful discrimination.