Finance Act, 1990
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Payments in respect of personal injuries. |
5.—(1) This section applies to any payment which is made— | |
(a) to, or in respect of, an individual who is permanently and totally incapacitated by reason of mental or physical infirmity from maintaining himself, and | ||
(b) following the institution by, or on behalf of, the individual of a civil action for damages in respect of personal injury giving rise to that mental or physical infirmity. | ||
(2) Income which arises to a person, to or in respect of whom payments to which this section applies are made, from the investment, in whole or in part, of such payments or of income therefrom, being income consisting of dividends or other income which would, but for this section, be chargeable to tax under Schedule C or under Case III, IV (by virtue of section 4 of the Finance Act, 1974 ) or V of Schedule D or under Schedule F, shall be exempt from tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts but the provisions of those Acts in relation to the making of returns of total income shall apply as if this section had not been enacted: | ||
Provided that this section shall not apply in a case unless the income so arising (hereinafter in this proviso referred to as “the exempt income”) is the sole or main income of the individual to or in respect of whom the exempt income arises. | ||
(3) This section shall have effect as respects the year 1990-91 and subsequent years of assessment. |