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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16422
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Do I have to pay tax on money received from a court case

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Do I have to pay tax on money received from a court case abroad?
JA: Have you talked to a tax professional about this?
Customer: No
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: The money is coming from a court case in Botswana and being split by me and my mum. I am a British citizen, working full time in the UK, not certain the exact amount of money, but estimated near £100k

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Usually court cases are tax free as indictive of compensation can you advise why this income as awarded

Thanks

Sam

Customer: replied 17 days ago.
it was a lawsuit against another company to do with a false report and defamation of my late dad. I can't say too much because of an NDA, but it was a settlement agreement

Hi

I am afraid I cant comment then fully but it does ring true of compensation for damages so is tax free

But if any interest awarded then this is liable to tax

Thanks

Sam

Customer: replied 17 days ago.
Interest awarded? What does that mean?

Hi

Sometimes if money is owed (as lost) then extra is added on in the form of an interest payment to compensate for the time delay

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 17 days ago.
Oh alright, thanks

Hi

You are welcome

Thanks

Sam