177. Damages and compensation for personal injury.

No liability to income tax arises for the specified persons in respect of:

  1.  

    (1)     periodical payments made pursuant to:

    1.  

      (a)     an order of the court1 (including an order as varied);

    2.  

      (b)     an order of a court outside the United Kingdom which is similar to such an order;

    3.  

      (c)     an agreement (so far as it settles a claim or action for damages in respect of personal injury2 (including an agreement as varied);

    4.  

      (d)     an agreement (so far as it relates to making payments on account of damages in respect of personal injury that may be awarded in such a claim