header-logo header-logo

17 June 2022 / Francisco Alvarez , Shofiq Miah
Issue: 7983 / Categories: Features , Tax , Personal injury
printer mail-detail

Damages: time to face the tax?

84981
Francisco Alvarez & Shofiq Miah on the importance of bearing in mind the taxation consequences when dealing with damages
  • A recent High Court decision has underlined the importance that any assessment of damages should always include an analysis of the tax consequences.
  • An adviser’s failure to identify the relevance of taxation in the calculation of damages and advise their client accordingly could come back to haunt them.

The recent case of Mathieu v Hinds and another [2022] EWHC 924 (QB), [2022] All ER (D) 66 (Apr) is a valuable reminder that in an action for damages—whether before a judge, an arbitrator or in settlement negotiations, and whether you are the claimant or the defendant—it is important to give serious thought to how taxation may affect the outcome.

It may seem odd to think of tax in a case where the underlying subject matter has nothing to do with tax, but in fact tax should almost always be a consideration. This is because the exercise of calculating

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Haynes Boone—Jeremy Cross

Haynes Boone—Jeremy Cross

Firm strengthens global fund finance practice with London partner hire.

DWF—Stephen Webb

DWF—Stephen Webb

Partner and head of national planning team appointed

mfg Solicitors—Nick Little

mfg Solicitors—Nick Little

Corporate team expands in Birmingham with partner hire

NEWS
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts

An engagement ring may symbolise romance, but the courts remain decidedly practical about who keeps it after a split, writes Mark Pawlowski, barrister and professor emeritus of property law at the University of Greenwich, in this week's NLJ

Medical reporting organisation fees have become ‘the final battleground’ in modern costs litigation, says Kris Kilsby, costs lawyer at Peak Costs and council member of the Association of Costs Lawyers, in this week's NLJ
back-to-top-scroll