Out of court settlement

Out of court settlement

Didn't find your answer?

Have looked but cannot find an answer, any pointers would be grateful (Hvae searched HMRC manuals but can't find what I am looking for  - is that not a U2 song?)

Client has settled out of court with a former employer who was claiming damages for an injury sustained using one of their machines.

To avoid lengthy court battles/costs and the fact that (as their solicitor told them)  "although you have an almost cast iron case that it was not your fault, unfortunately the judge may well decide in favour of the "small person" and you would then be far worse off)" they decided to offer the individual £20k in a full and final without prejusdice or admission of liability settlement.

Can anyone advise on the CT deductibility of the settlement (if it had gone to court and they had lost - not an issue but what about in this case?)

Thankyou

Replies (2)

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David Winch
By David Winch
15th Feb 2012 21:04

Insured loss?

Will not the claim and the client's legal fees be paid by the client's employer's liability insurers?

David

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Replying to Dib:
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By Ding Dong
16th Feb 2012 15:16

@ David - long story...................

But no, loss is not insured due to a "technicality" (I won't bore you all with it today!)

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