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Is compensation taxable?

Payment made to relative

An  SA client is in the process of being awarded compensation from a private claim for asbestosis for deceased father.

This is beyond my scope of expertise and I need technical advise - where is it best to get this advise?

Many thanks in advance

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07th Dec 2017 15:33

The value of the right to pursue a claim should have been declared as an asset within the deceased's estate for inheritance tax purposes (HMRC Trusts & Estates Newsletter August 2013) but other than that there are no tax consequences http://webarchive.nationalarchives.gov.uk/20141203185019/http://www.hmrc...

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to michaelblake
07th Dec 2017 15:39

Michael Blake - thank you very much!

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08th Dec 2017 05:56

Is this a dependency claim made by your client, or a claim (as Michael is assuming) made by or on behalf of her deceased father during his lifetime?

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