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    "If you've been injured through no fault of your own you could be entitled to compensation. If you're unsure if you could claim, I recommend you call Accident Advice Helpline."

    Esther Rantzen

    What is the tax on personal injury compensation?


    Whenever you receive a sum of money unexpectedly, it can be a lovely surprise. However, it is reasonable to then wonder if you have any amount of tax to pay on that sum. The answer, of course, will depend on how you came to receive the money, and what type of income or payment it is. Many of those individuals who have been hurt in an accident and might potentially receive compensation as a consequence of this do ask if tax on personal injury compensation is payable.

    You will be pleased to hear the answer is no. If you receive any personal injury compensation for injuries suffered by you in a relevant situation, you will never have to pay any amount of tax on it. In some cases, the amount you receive may potentially have been adjusted slightly to account for the interest you would have received on it had you been given the money on the day of the accident. However, this is really the only relevance any tax has on the matter.

    What can you do with the money?

    The only sure way to find out how much compensation you could potentially be on the receiving end of would be to have a talk with an advisor who specialises in claims such as these. Even then, you will only be able to get an estimate of what could possibly be granted in the event your case is successful. Everything is dealt with on a case-by-case basis, which means you may not get the same as someone else in a similar situation.

    However, if you did receive compensation of any amount, you would have the freedom to do whatever you wished with it. For some people, the money provides peace of mind and the ability to move on with their lives, especially if their injuries mean they now need help or cannot work as they did before.

    How much might you receive?

    To find out more, call Accident Advice Helpline on 0800 689 0500, or 0333 500 0993 from a mobile. There is another way to get a better idea too, and this is to take the online test which can be completed in just 30 seconds.

    Open Claim Calculator

    Now you know you don’t have to pay tax on personal injury compensation, there may be no barriers at all to getting in touch. Isn’t it about time you discovered more about your accident?

    Category: Personal injury claims

    Accident Advice Helpline (or AAH) is a trading style of Slater Gordon Solutions Legal Limited. Slater Gordon Solutions Legal Limited is a company registered in England and Wales with registration number 07931918, VAT 142 8192 16, registered office Dempster Building, Atlantic Way, Brunswick Business Park, Liverpool, L3 4UU and is an approved Alternative Business Structure authorised and regulated by the Solicitors Regulation Authority. Authorised and regulated by the Financial Conduct Authority.

    Disclaimer: This website contains content contributed by third parties, therefore any opinions, comments or other information expressed on this site that do not relate to the business of AAHDL or its associated companies should be understood as neither being held or endorsed by this business.

    No-Win No-Fee: *Subject to insurance costs. Fee payable if case not pursued at client's request.