Accident Payout

STEVE_D_8

Hi there.

Following a very lengthy accident case, i finally have been offered a payout.

Can anyone tell me, am i going to be hit for TAX or is this type of thing exempt ?

Thanks

Steve

jonesMUFCforever

I think it wil be free of income tax but if you are on benefits it may mean it will effect those which are means tested.

Glad

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ioscorpio

The Benefits Agency will want anything they have paid out

System

You will only be liable for tax on any interest you make on the award.

An elderly family friend was in a similar position and her award was placed in a trust administered by a solicitor and another friend. This was to ensure that she continued to receive her disablement benefits and that the award was only used to make her life easier ie replace bath with shower, lower surfaces in kitchen etc.