do you have to pay income tax on compensation recieved for a bad accident?
2007-10-25 07:21:35 · 7 answers · asked by happy_girl 2 in Cars & Transportation ➔ Insurance & Registration
If you are being compensated for the injury .... No it is not taxable
If you are being compensated for lost income I would say probably yes but talk to a lawyer or a tax consultant
2007-10-25 07:31:00 · answer #1 · answered by don_sv_az 7 · 2⤊ 0⤋
Income tax is what you pay on your income, i.e what you earn from your job for example.
A cheque for, say £1000, for whiplash is compensation and therefore certainly not something that is taxed.
It's no different than someone giving you a cheque for your birthday.
2007-10-27 08:26:08 · answer #2 · answered by Daniel 1 · 0⤊ 0⤋
hi , hardship is that that may no longer a rip-off as such simply by fact it is not unlawful . those human beings blanket text cloth /call hundreds of random numbers understanding they gets a consequence from a small proportion. whilst they have interior expertise of an twist of fate it has many times come from somebody who gets a `referal` value ie a breakdown driving force or the storage the automobile became taken to. the coolest information is that paying or receiving a referal value is quickly to grow to be unlawful so ought to stop a lot of those calls, yet I`m specific the human beings in contact will stumble on a manner around the regulation. Figures teach those `claims` and ` crash for money ` fraud upload £30-50 to each insurance top rate , so that is going to likely be exciting to confirm if our quotes flow down if and whilst the regulation takes result.
2016-10-14 00:36:45 · answer #3 · answered by ? 4 · 0⤊ 0⤋
No, it's not income, it's compensation for loss. Only income, interest, profit on sales, stock increases, that type of thing is subject to tax.
2007-10-25 07:49:02 · answer #4 · answered by oklatom 7 · 2⤊ 0⤋
Interesting. ...not sure, best person to ask is of course the tax man....did it not specify at the time whether or not the sum was tax free? I shall watch the answers and see what others thing.
2007-10-25 07:29:09 · answer #5 · answered by Knownow't 7 · 0⤊ 1⤋
The settlement the insurance company offers is not taxable.
2007-10-25 10:57:26 · answer #6 · answered by ahedou2 4 · 1⤊ 0⤋
No
2007-10-25 10:00:15 · answer #7 · answered by Scouse 7 · 1⤊ 0⤋