Is a court-steps settlement tax-free?

[AlastairSC]

Received an out-of-court settlement for a traffic accident (30k). I'm a PAYE tax-payer.

Anyone know if I have to pay any type of tax on this?

 

[srase]

Personal injury compensation is tax free in most cases. See following link for more details - [broken link removed]

If the compensation was for loss of earnings instead of personal injury it may be taxable.

 

[AlastairSC]

It was for personal injury. So, no tax . Thanks, Srase.