Income Tax (Trading and Other Income) Act 2005 section 756A

Interest on certain deposits of victims of National-Socialist persecution

Section 756A exempts from income tax certain interest payments made to victims of National-Socialist persecution under qualifying compensation schemes in respect of deposits made on or before 5th June 1945.

• Interest paid to or in respect of a victim of National-Socialist persecution is exempt from income tax, provided it is paid under a qualifying compensation scheme for a qualifying purpose relating to a qualifying deposit
• A qualifying compensation scheme must be established by a written instrument (whether under UK law or elsewhere) and must have as one of its purposes the making of interest payments to victims in respect of qualifying deposits
• Interest is paid for a qualifying purpose if it meets a liability for interest on the deposit or compensates for the effects of inflation on the deposit
• A qualifying deposit is one made by or on behalf of the victim on or before 5th June 1945