Income Tax (Trading and Other Income) Act 2005 section 733

Persons entitled to exemptions for personal injury payments etc.

Section 733 identifies which persons are entitled to claim the income tax exemptions for periodical personal injury damages payments and compensation awards provided by sections 731 and 732.

• The person entitled to the damages or compensation under the relevant order, agreement, undertaking or award (referred to as "A") can claim the exemption directly.
• A person who receives an exempt payment on behalf of A is also entitled to the exemption.
• A trustee who receives the payment on trust for A's benefit qualifies, but only where A is the sole beneficiary of the trust during A's lifetime.
• No other person beyond these three categories can benefit from the exemptions under sections 731 and 732.