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Tax exemption for Child Survivor Fund

Tax exemption for Child Survivor Fund

The Association of Jewish Refugees was delighted to receive confirmation from the Financial Secretary to the Treasury, the Rt Hon David Gauke MP, that the one-time payments made from the Child Survivor Fund (CSF) will be exempt from income tax, capital gains tax and inheritances tax.

Responding to a letter the AJR sent to the Chancellor, George Osborne, Mr Gauke announced the government’s intention to add the CSF to a list of payments that qualify for inheritance tax exemption. The measure will be confirmed in the Finance Bill 2016 and will apply retroactively to cover payments made to people who died after 1 January 2015, when the scheme was launched.

Mr Gauke separately confirmed that there will be no income tax charge on payments from the CSF and that awards will not be liable to capital gains tax.

The CSF makes awards of €2,500 to eligible child survivors of the Holocaust, specifically those born after 1 January 1928 and who endured persecution in Nazi-occupied Europe. The Fund was established in September 2014 following an agreement between the German government and the Conference on Jewish Material Claims Against Germany (Claims Conference), a US based not-for-profit organisation that negotiates financial support for Holocaust survivors worldwide.

Earlier this year the Claims Conference remitted CSF payments to 21,600 Jewish Nazi victims, including 153 to UK survivors. It is estimated that some 75,000 survivors worldwide will be eligible for a payment and that approximately 85% of the remaining 250 applications received from Holocaust survivors living in the UK will be entitled to an award.

AJR trustee, David Rothenberg, who corresponded with Mr Gauke, said: “This wonderful news will be of great comfort to those of our members who will receive an award from this historic programme. My colleagues and I are most grateful to the Financial Secretary for his intervention and personal interest in this matter and in the work of the AJR.”