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Ruc Widows' Compensation Payments: Tax

Volume 622: debated on Monday 19 February 2001

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asked Her Majesty's Government:Whether they will ensure that extra compensation to be paid to Royal Ulster Constabulary widows as a result of a report from Mr John Steele is not subject to any form of tax upon payment. [HL533]

John Steele's report into the Patten Commission's recommendation for a new police fund was published in November.John Steele proposed the payment of lump sums to pre-25 November 1982 widows whose husbands had been killed as a result of terrorism. This proposal was accepted by the Government and we have been working to implement it by April 2001. As John Steele noted in his report (paragraph 42) there are complicated tax issues to be considered and we are looking at these with the Inland Revenue.