Income Tax (Trading and Other Income) Act 2005 section 148

Periodical payments of personal injury damages etc.

Section 148 sets out transitional modifications to the income tax exemptions for periodical payments of personal injury damages, adjusting definitions and references in sections 731, 733 and 734 to reflect the legal position before the Courts Act 2003 provisions took effect.

• The exemption for periodical payments of personal injury damages (section 731) is modified so that it covers payments made under court orders (final or interim), settlement agreements, and agreements for payments on account of damages that may be awarded
• References in sections 733 and 734 are simplified by removing the word "undertaking" so that they refer only to court orders or agreements
• Subsection (6) of section 731 is removed entirely under the transitional rules
• These modifications do not apply if the relevant provisions of the Courts Act 2003 were brought into force before 6 April 2005, and a commencement order under that Act can specify a later date from which the modifications cease to apply