Personal injury compensation

[mark willis]

Hi

My partner was made redundant last year and at the same time was awarded a sum in respect of "compensation for injury to feelings" I spoke to the IR today and they pointed me to the help sheet EIM12965.

She appears to qualifier for the payment to be classed under this "Section 401 ITEPA 2003" classification.

My question is how do I record this on the self assessment form i.e.

1. Do I just leave is off
2. Do I put it in then some how record it as a Section 401 ITEPA 2003 exemption.

thanks

Mark

[AvocadoK]

Hi Mark,
The payment should not be included on the tax return. I recommend you look at the help sheet SA 101 Notes - here is a link
http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=c1_5-SbJh34&formId=3005
And then look at Worksheet 8 (page 16). If you follow this through, you will see that the injury to feelings payments are excluded from the figures that you enter on the tax return.
Regards
AK