Inheritance Tax Act 1984 section 153ZA

Qualifying payments

Section 153ZA provides a reduction in the inheritance tax chargeable on death where the deceased (or their personal representatives) received qualifying payments connected with persecution during the Second World War era.

• Where a qualifying payment has been received by a person or their personal representatives, the inheritance tax on the value transferred on death is reduced by 40% of the qualifying payment amount, or the full tax otherwise due if that is lower.
• Qualifying payments include payments made to victims of National-Socialist persecution (or their spouses or civil partners), certain listed payments in Schedule 5A, and payments to prisoners of war or civilian internees during the Second World War (or their spouses or civil partners) as specified in Treasury regulations.
• The Treasury has the power to add further types of payment to the list of qualifying payments in Schedule 5A by statutory instrument, and such regulations may apply retrospectively to deaths occurring before the regulations are made.
• Any statutory instrument containing regulations under this section is subject to annulment by a resolution of the House of Commons.