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Ask Clare Your Own Question
Clare, Solicitor
Category: Law
Satisfied Customers: 35058
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Can my house ,purchased from a NHS clinical negligence award.

Customer Question

Can my house ,purchased from a NHS clinical negligence award. Be taken to pay for my
care home costs.
when 3yrs ago I was discussing with my barrister, the award sum . I asked if tax was
liable His reply was good God no, it's an award no one can touch it.
Does this apply now its a house.
The negligence is the cause of my problems.
Many thanks
Submitted: 2 years ago.
Category: Law
Customer: replied 2 years ago.
e mail***@******.***
Expert:  Buachaill replied 2 years ago.
1. Dear *****, all awards for negligence, such as your own, are received free of tax. There is no tax payable on them. So, you do not have to pay tax on the award which you received. The barrister is correct in this regard. It is then up to you what ycu want to do with the award. Buying a house does not give rise to a tax charge. Just because you have converted the award into a house does not mean that it is now taxable. However, you will have to pay your bills as they fall due. It would only be if a judgment against you was registered, for unpaid care home costs, that then the house might be sold to discharge the judgment. HOwever, as things stand, there is no judgment against you and there is no way in which your house can currently be sold on you. Nor is there any tax liability which you owe.
Expert:  Clare replied 2 years ago.
HiThank you for your questionIf you mean can the Local Authority force the sale of the House if you do not have the funds to pay for the Care Home then I am afraid that the answer i s yes, as this is not a matter of Taxation, but a question of entitlement (or otherwise) to a Means Tested BenefitPlease ask if you need further details