Paying tax on accident claim?

T

thehun

Guest
Hi guys,

A friend of mine (no seriously!) received a substantial accident claim (100k) while in the UK about 10 years ago. Anyway, he never paid any tax and brought the money back into Ireland. It has been in a bank account ever since.

Does anyone know if
1) you have to pay tax on accident claims received in the UK?
2) you have to pay tax on accident claims received in the Ireland?

any comments greatly appreciated
 
Personal injuries compensation received in Ireland is tax free. Not sure about the uk.
 
I'd imagine it is the same in the UK as in ireland (at least the portion which relates to compensation for an injury). I would also have expected a solicitor to advise if it was taxable.
 
The Irish situation is summarised here anyway:

[broken link removed]
[broken link removed]
 
Thanks for that guys.

It seems that the claim does not qualify for exemption from tax if the

-Compensation payment received is as a result of minor injuries or
-Compensation payment to an individual whose injury causes permanent incapacity but the incapacity is not total or does not prevent the individual from maintaining himself or herself.

So if you were not permanently incapacitated then you would have to pay tax?
 
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