NHS workers face inheritance tax trap

The families of NHS workers who died during the pandemic face wrongly paying inheritance taxes. Medics who lost their lives to coronavirus are missing out on a little-known exemption due to confusion over complex rules, lawyers fear. Doctors and nurses who died of Covid-19 after working in hospitals and surgeries during the pandemic are eligible for 100pc relief from inheritance tax on their estate. In 2015, the government extended an inheritance tax exemption – previously only available to members of the armed forces – to include “blue light workers” who die responding to emergency circumstances. HM Revenue and Customs confirmed in 2020 the exemption applied to healthcare workers who died while working on the pandemic frontline. More than 800 doctors, nurses and other healthcare workers died of coronavirus between March 2020 and February 2022, according to the Office for National Statistics. It is mainly older, senior members of staff who stand to benefit from the exemption, as they have had more time to build their wealth and incur an inheritance tax liability. Many doctors and nurses who contracted Covid-19 in the line of duty have survived with long-term health conditions which could still play a major role in their...

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