Part 6Exempt income

Chapter 9Other income

Interest only income

756AF1Interest on certain deposits of victims of National-Socialist persecution

1

No liability to income tax arises in respect of interest which is paid—

a

to or in respect of a victim of National-Socialist persecution,

b

under a qualifying compensation scheme, and

c

for a qualifying purpose in respect of a qualifying deposit of the victim.

2

A scheme is a qualifying compensation scheme if—

a

it is constituted (whether under the law of any part of the United Kingdom or elsewhere) by an instrument in writing, and

b

the purpose of the scheme, or one of its purposes, is to make payments of interest to or in respect of victims of National-Socialist persecution for qualifying purposes in respect of qualifying deposits.

3

Interest is paid for a qualifying purpose in respect of a deposit if—

a

it is paid for meeting a liability in respect of interest on the deposit, or

b

it is paid for compensating for the effects of inflation on the deposit.

4

In relation to a victim of National-Socialist persecution, a deposit is a qualifying deposit if it was made—

a

by, or on behalf of, the victim, and

b

on or before 5th June 1945.

5

In this section “deposit” has the F2same meaning as in Chapter 19 of Part 15 of ITA 2007 (see section 983 of that Act)