Tax on Privately Settled Claim

TaxqOnClaim

I sustained an injury due to broken council property and have since received a settlement amount after claiming for expenses associated with the injury. The offer is for more than my expenses provided I sign a waiver that I won't sue basically. I'm happy with all of that as all I really expected was expenses.

I am wondering if the payment will be subject to tax though. It's not something that has permanently incapacitated me and wasn't settled in court which were the two exemptions I can find on the revenue site. It's not for loss of earnings either so I'm not sure where to find out if I'm liable or not.

Any help appreciated!

Turkish1

TaxqOnClaim wrote: »

I sustained an injury due to broken council property and have since received a settlement amount after claiming for expenses associated with the injury. The offer is for more than my expenses provided I sign a waiver that I won't sue basically. I'm happy with all of that as all I really expected was expenses.

I am wondering if the payment will be subject to tax though. It's not something that has permanently incapacitated me and wasn't settled in court which were the two exemptions I can find on the revenue site. It's not for loss of earnings either so I'm not sure where to find out if I'm liable or not.

Any help appreciated!

I believe compensation" - for physical/mental damages is exempt from tax.

Was there a solicitor involved at all? If so, they should more than likely be able to confirm the treatment - and/or speak to a tax advisor

TaxqOnClaim

Thanks for the reply. No solicitor involved - apparently they have a claims department so I just sent in receipts, proof that I suffered a break and that was it.

Turkish1

TaxqOnClaim wrote: »

Thanks for the reply. No solicitor involved - apparently they have a claims department so I just sent in receipts, proof that I suffered a break and that was it.

I would suggest getting professional advice. Should be very straight forward and the cost (if any) would be minimal. They could probably answer on the phone in 5minutes.

Im far from an expert and i know there are conditions that need to be met for it to be exempt.

TaxqOnClaim

Any recommendations of who from and approximate cost of advice please? The settlement wasn't for huge amounts - nothing like what you would see reported - so I don't want to spend a lot on advice?

Thanks!