Actual Bodily Harm Compensation payment

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  • #23252
    peter andre
    Participant

    I am dealing with a claimant who received a compensation payment of £4,000 for actual bodily harm, this has been made by court order and will be paid at £50 per week.

    The regulations are unclear whether this payment is a disregarded income or not. Can any one help?

    Cheers

    Rob

    #11658
    petedavies
    Participant

    Not really sure on this one but…

    I’m not convinced it is income – I think it is capital payable to your claimant in installments a la HBR. 41.

    If so then Sch6(14A) will apply but…you are going to have to decide what a payment is – If it is the award (which I guess was the intent of the regs) you can disregard everything for 52 weeks from the date of the award.

    If a payment is a transfer of funds from 1 party to another you only disregard the first payment for 52 weeks (Which I think may well be the result of the wording of the Regs).

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