Are PI proceeds taxable?

I overlooked the quarterly payments rules in a CT case and have a PI claim against me (& quite rightly so!). The late payment interest of £8K charged to my client is allowable for CT and thus the claim is reduced by 26%. When the claim is paid out  (roughly £5K) is that taxable?. If so, the agreed claim needs to be increased by the tax chargeable.

Comments
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Yes - you can claim the costs

eastangliantaxadvisor |
eastangliantaxadvisor's picture

I think . . .

davidwinch |
davidwinch's picture

Thanks David,

yorky1000 |

It arises from the trade...

George Attazder |
George Attazder's picture

Thanks George. Good point &

yorky1000 |

Not sure I agree there

Marion Hayes |
Marion Hayes's picture

Don't think it is trading

Alf |

What about any costs of borrowing incurred before the PI payment

Caber Feidh |
Caber Feidh's picture

The clue is, it's a company

George Attazder |
George Attazder's picture