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Ash
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Alex Watts, Alex, It's Sandra from Menu Printers Well

Resolved Question:

Alex Watts,
Hi Alex,
It's Sandra from Menu Printers
Well we were successful with the commital proceedings. They admitted it ( !!!!) and the judge adjourned the sentencing until after the main hearing.
The Defendants now want to go through the Mediation Route.
My question is - what is the tax liability for a settlement claim, and is it seperated into different components.
The main claim covered the following:
1 - Damages, not exceeding £20,000, due to the following – based on 40%
profit on sales i. e. value of order £1,000 = £600 paper + £400 profit)
2 - Malicious Falsehood, not exceeding £25,000, due to the following
3 - Correcting damage done by defendants - £20,000, to include
4 – Loss of Income caused by above, not exceeding £26,000
5 – Cost of removal of claimants assets from defendants address – Not exceeding £1,000 – this was caused by the urgent need to remove our property from the defendants building – created by their conduct i.e. the defendants put an extra lock on the door of the premises to stop us retrieving our assets.
6 – Relocation Costs – Not exceeding £1,000 - this was caused by the urgent need to move our business from the defendants building – created by their conduct
7 – Punitive Damages – Not exceeding £7,000
However we have stated we will accept £70,000.
I just wanted an idea of the tax liability on an accepted mediation.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello and thanks for requesting me,
Tax liability is only on things like loss of income etc, you don't have pay on damages. It is only where you have had income which you have been compensated for do you have to pay tax. So it looks like the £26,000
Does that help?
Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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Expert:  Ash replied 1 year ago.
Hi

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex

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