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This text brings together the various and often complex issues which have to be considered when paying, receiving or negotiating damages. The central and confusing issue of whether compensation/damages should be treated as capital or revenue receipt is covered in depth.
The author also answers numerous other important questions - what is the correct VAT treatment? Is interest paid as part of an award liable to tax? Does a severance payment include a taxable emolument? Tax practitioners in both legal and accounting firms and legal officers in insurance companies should find this a useful and practical guide to the correct and most advantageous tax