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Paying tax after motor accident

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emptyhead | 10:44 Tue 15th May 2007 | Personal Finance
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Does anyone know (especially from personal experience etc), if I will have to pay any tax (inheritance / income??) on a lump sum payment made to me by another persons insurance company. They damaged me pretty well and I underwent numerous operations. Understandably I do not think the taxman suffered so I do not want to give any to him/her.
Best Regards
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No, you don't pay take on compensation.
As Ethel says, the money itself is not subject to tax as you receive it, however any income it generates (such as interest) will be taxable. It would also fall into your estate for Inheritance Tax purposes.
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Many thanks for your answers. I thought not but nothing surprises me much now : )

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Paying tax after motor accident

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