TCTM04608 - Further disregards in the calculation of investment income
Interest and periodic payments for personal injuries damages
The 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.