Large damages in personal injury cases are increasingly being
paid as an annuity, series of annuities or other series of
recurrent payments, usually for the life of the injured party.
Sometimes the payments will be made directly by the
responsible body, or defendant, for example a health authority,
though commonly the defendant’s general insurer will be
liable. The general insurer, for instance a motor insurer, will
often buy an annuity from a life insurance company to meet its
liabilities under the claim.
ITTOIA05/S731 onwards deals with the tax
implications of structured settlements, but does not use or define
the term.
| Further reference and feedback | IPTM1013 |
