- Following the Chancellor’s budget announcement (3 March 2021), the government announced that the Finance Bill 2021 will introduce an income tax exemption for financial support payments made to potential victims of modern slavery and human trafficking.
- The UK has an obligation under the council of Europe Convention on Action against Trafficking in Human Beings to assist modern slavery and human trafficking victims in their physical, psychological and social recovery. The payments are made under Article 12.
- This measure will be introduced retrospectively, taking effect from 1 April 2009 - the date that the financial support payments came into force.
- The measure will mean that financial support payments made to potential victims of modern slavery and human trafficking are exempt from income tax.
- Currently these payments represent annual payments and the payments made to potential victims are chargeable to tax under 683 of the Income Tax (Trading and Other Income) Act 2005).
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https://www.aspirepartnership.co.uk/News/4549/budg..
