Will I pay tax?

[Itwontfixitbut]

I am going to be receiving a large (for me) payout after legal action against a large company for injuries I received. It's likely to be in region of £100k

I can't find an answer on whether or not I will have to pay tax on this? Does anyone know?

Are you getting help from a lawyer for your legal claim? They should be able to advise you properly.

A quick look online suggests that personal injury compensation isn’t taxable though. https://www.national-accident-helpline.co.uk/making-a-claim/no-win-no-fee/what-is-legal-aid/is-compensation-taxable

Good luck.

You won't pay tax on it. It will affect means tested benefits if you receive any though (you do have a 12 month disregard for the payment, however, but this runs from the first interim payment, if you've had one, not the final payment).

Not if it's in a personal injury trust.

www.milnerslaw.co.uk/will-personal-injury-payouts-affect-my-benefits

I know that, but didn't mention it as she didn't refer to it herself. Plus some people aren't keen on the setting up / ongoing costs where it's not a huge amount (though it may be worth it with £100k).

TBH, her solicitor should be giving her this advice.

She may also already have plans for it, so a trust may not be appropriate.