Inheritance Tax Exemptions for Emergency Responders and Service Personnel

There are a number of Inheritance Tax exemptions available and some of the lesser known and more unusual exemptions to IHT apply to members of the Armed Forces and Emergency Service Personnel such as paramedics, firefighters and police. This article explores the Inheritance Tax exemptions available to emergency responders, members of the armed forces and service personnel that have been deliberately targeted.

Exemptions for Emergency Service Personnel Responding to Emergency Situations

An exemption from Inheritance Tax (IHT) is available when an emergency responder dies as a result of responding to emergency circumstances.

This exemption applies if death results from:

• An injury sustained, an accident occurring, or a disease contracted while responding to emergency circumstances; or
• A pre-existing disease, where death was due to, or hastened by, its aggravation during a response to an emergency.

There is no time limit on when the injury, accident, or disease occurred.

Qualification criteria

To qualify, the individual must meet both of the following criteria:

• Be classed as an emergency responder under the relevant legislation; and
• Have been responding to emergency circumstances at the time.

Exemptions for Armed Forces and Civilians Subject to Service Discipline

A separate IHT exemption applies to members of the armed forces (and civilians under service discipline) whose death results from:

• A wound, accident, or disease incurred on active service; or
• The aggravation of a pre-existing disease due to active service.

For deaths on or after 19 March 2014

the exemption also includes situations where these individuals are responding to emergency circumstances as part of their duties.

To qualify under this rule:

• The individual must have been on duty and actively responding to an emergency.
• For example, a soldier who dies while assisting at an incident while on leave would not qualify unless their unit was officially assigned to respond.

Again, there is no time limit on when the injury or disease was sustained.

Exemptions for Constables and Service Personnel Deliberately Targeted

The third exemption applies where a constable or member of the armed forces (or civilian under service discipline) dies as a result of being deliberately targeted due to their profession.

This includes both serving and former constables or service personnel. The exemption applies if death results from:

• An injury sustained or disease contracted in circumstances where they were deliberately targeted because of their job; or
• A pre-existing disease aggravated by such an injury or disease resulting from the targeting.

There is no requirement that the person was on duty or acting in an official capacity at the time. The timing of the injury or disease is also not restricted.

This exemption typically covers deaths caused by intentional attacks motivated by the individual’s role.

Examples include:

• The 2013 killing of Fusilier Lee Rigby
• The 2012 deaths of PCs Nicola Hughes and Fiona Bone

For more information on further Inheritance Tax exemptions please visit the gov.uk website.

Article written by Melissa Howman.

This article does not constitute legal advice and we recommend you take advice from a solicitor before taking any action.

Contact us for further advice

Our solicitors specialise in advising on Inheritance Tax and often work closely with other professionals such as financial advisors. To book a free initial consultation, please call us on 01260 769 639. We offer appointments at our Congleton office or in your own home. Alternatively, meetings can be carried out online (e.g. via Teams).

Our solicitors will be happy to advise you on your options.