Commentary

E1.553 Exemption from charge to income tax for payments for personal injury damages

Personal and employment tax

E1.553 Exemption from charge to income tax for payments for personal injury damages

E1.553 Exemption from charge to income tax for payments for personal injury damages

Exemptions from income tax are available in respect of various periodical payments and annual payments made in respect of personal injury damages1.

For the purposes of this exemption, 'damages in respect of personal injury' includes damages in respect of a person's death from personal injury, and 'personal injury' includes disease and impairment of physical and mental condition2.

The exemption applies to periodical payments made in accordance with an order of the court (including a similar foreign court order)3. It also applies to an agreement for settling, or

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