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Posted Sat, 15 Jul 2023 14:55:41 GMT by
I am a Dutch national who resides in the UK, domiciled tax status with settled status. I was in care when I was a minor (in the Netherlands) and I suffered abuse there. The Dutch government conducted a national investigation into abuse in children's homes and foster placements and found that around 75% of children suffered undue violence or abuse while in care. As a result, it launched an initiative where all victims could claim a one-off fixed-sum compensation of 5000 euros. I filed a claim and will likely be approved. The Dutch government has been very clear with its citizens that this money is 100% tax free, doesn't affect income/benefits and so on. Even people under appointeeship/deputyship don't have to hand this money over; creditors also cannot touch it. However, what are the implications for me trying to transfer this sum of money from my Dutch bank account to my English bank account? Do I need to declare it to either HMRC or my bank? Will I have to pay tax over it? Will I have to pay tax over it if I put it in an ISA and gain interest? Kind regards, Semperlupe
Posted Mon, 17 Jul 2023 14:05:19 GMT by
Correction: creditors CAN 'confiscate' the money, but the tax bit was correct.
Posted Fri, 21 Jul 2023 06:27:31 GMT by HMRC Admin 25 Response
Hi semperlupe,
Transfering your Dutch compensation payment to your UK bank account would have no income tax implications (unless interest is generated) so no declaration of the transaction is required.  
Tax on savings and investments: detailed information
Thank you. 
 

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