IHTM17059 - Pensions: IHT charges: NHS and Social Care Coronavirus Life Assurance Schemes

As part of the response to the coronavirus pandemic life assurance schemes were introduced across the UK to provide a death benefit payment for people working in front-line health and social care who die as a consequence of contracting Covid-19 at work. There are separate schemes covering England, Wales, Scotland and Northern Ireland respectively.

The schemes provide for a death in service payment of £60,000. This payment may be paid to the personal representatives of qualifying individuals where a claim is made.

Payments under these life assurance schemes are separate from payments due under the respective NHS pension schemes and the guidance at IHTM17058 does not apply to payments under these schemes.

Payments under these schemes are not subject to inheritance tax on the death of the health or social care worker as these payments are not due to the estate as of right.