Compensation settlement taxable

Do I have to pay tax on a compensation settlement?

However, the business will usually need to pay you back for any tax you incur, if the surrender or sale is a result of the compensation settlement. You may get interest on top of your compensation and if so, this is potentially subject to income tax. The interest on the premiums is potentially liable to income tax.

When is a settlement deemed to be compensation under the law?

It was held to be compensation as a result of a satisfactory settlement of a case for breach of a joint venture agreement. The settlement was deemed to be compensation of a capital nature and therefore liable to taxation under the Capital Gains Tax legislation.

Is a settlement taxable under capital gains tax?

The settlement was deemed to be compensation of a capital nature and therefore liable to taxation under the Capital Gains Tax legislation.