TCTM04608 - Further disregards in the calculation of investment income

Interest and periodic payments for personal injuries damages

»Ê¹ÚÌåÓýapp Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg.10(2), Table 4, Item 8.

When calculating investment income, disregard the following:

  • Any interest or payment which is disregarded for income tax by virtue of :
  • Section 751 of ITTOIA ( interest or damages for personal injury), or
  • Section 731 of ITTOIA (personal injury damages in the form of periodic payments).

From 5 August 2004, periodic payments made by the Thalidomide Trust fall within the income tax exemption in section 731 of ITTOIA.