IPTM5090 - Payments to Thalidomide victims from the Thalidomide Children's Trust
The Thalidomide Children바카라 사이트™s Trust (Application of Section 329AA of the Income and Corporation Taxes Act 1988) Order 2004 came into effect on 5 August 2004. Before this date, income payments from the Thalidomide Trust were subject to the same tax rules as other trusts.
As a result of this order, where a series of recurrent payments is made from the Thalidomide Children바카라 사이트™s Trust to a Thalidomide victim, those payments are exempt from tax in a similar way to periodical payments of damages for personal injury under a court order.
All such payments to the Thalidomide victim and any person receiving the payment on his or her behalf made on or after 5 August 2004 when the order took effect are exempt from tax.
Income payments made before 5 August 2004 are taxable under the normal trust rules. More guidance on payments made before 5 August 2004 can be found at TSEM5954.