Anyone who has suffered a personal injury will know that the days, weeks or months following can be difficult and filled with uncertainty. If you have been injured as a result of someone else’s negligence, personal injury compensation can provide you with financial stability by covering the costs of rehabilitation, transport, medical bills as well as any loss of earnings you have experienced during that time. Although, it is not uncommon for people to ask whether or not the injury compensation they receive is taxable and whether this would impact their financial situation.
Generally, personal injury compensation for physical and psychological injuries in addition to loss of earnings, is exempt from income tax and capital gains tax in the UK. Meaning that you will not have to pay tax on any compensation you receive after successfully winning your injury claim.
Although the vast majority of compensation and damages awards are not taxable, there are some exceptions. For example, where your award includes interest or investment income, you may be required to pay tax on such amounts. Additionally, if you receive loss of earnings compensation as a regular payment, you may be subject to income tax.
This however should not deter you from seeking financial compensation for your injuries. There are certain cases where an injured person may find themselves eligible for tax reliefs or exemptions, such as those who require ongoing medical care or have been left with a long-term disability as a result of an accident. In any event, if you are unsure about the tax implications of your compensation, it is worth getting the professional opinion of a qualified accountant who will be able to provide further detail on the tax obligations specific to your case and ensure you are fully compliant with UK tax law.
How Stonehewer Moss can help you
At Stonehewer Moss, we have a team of highly skilled solicitors in Northwich & across Cheshire accredited by the Association of Personal Injury Lawyers (APIL) who are committed to winning your case and obtaining the maximum compensation possible. We offer free, no-obligation advice, and independent legal representation on a No Win, No Fee basis, so you can be assured that there is no financial risk to you.
We understand that an injury claim can be a source of stress and concern. Our aim is to make the legal process as straightforward and uncomplicated as possible, and to help you obtain private medical treatment and rehabilitation if necessary. We will also work to recover any losses you may have incurred.
For further information on No Win No Fee agreements, watch this short video to learn more.
Talk to one of our personal injury claims specialists
Call us on freephone 0800 434 6544 or 01606 87 22 00
