From 1 April 2005, courts have the power to
include terms in an order that allow for it to be varied at some
time in the future in specified circumstances. These might be, for
instance, if there is a chance that the injured person’s
condition will significantly improve or deteriorate in future. The
court would be able to vary the order on its own initiative or
following application by a party or with the agreement of all the
parties.
Although less common, agreements settling a claim or action
for damages for personal injury and undertakings from the Motor
Insurers’ Bureau might also be varied at a later date.
Where periodical payments arise from a variation of the
original order, agreement or Motor Insurers’ Bureau
undertaking, from 1 April 2005 those payments will also be exempt
from income tax, in the same way that periodical payments under the
original order, agreement or undertaking are exempt from tax.
| Further reference and feedback | IPTM1013 |
