Income Tax (Trading and Other Income) Act 2005 section 734

Payments from trusts for injured persons

Section 734 ensures that where personal injury damages or compensation payments are routed through a lifetime trust for the benefit of the injured person, the income tax exemption that applies to the underlying payments is preserved — both for the injured person and for anyone (such as a parent) who receives the payments on their behalf.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.