Part 6Exempt income
Chapter 8Other annual payments
Periodical payments of personal injury damages etc.
732Compensation awards
(1)
No liability to income tax arises for the persons specified in section 733 in respect of annuity payments if they are made under an annuity purchased or provided under an award of compensation made under the Criminal Injuries Compensation Scheme F1 or the Victims of Overseas Terrorism Compensation Scheme.
(2)
The Treasury may by order provide for sections 731, 733 and 734 to apply, with such modifications as they consider necessary, to periodical payments by way of compensation for personal injury for which provision is made under a scheme or arrangement other than the Criminal Injuries Compensation Scheme F1 or the Victims of Overseas Terrorism Compensation Scheme.
(3)
In this section—
“the Criminal Injuries Compensation Scheme” means—
(a)
the schemes established by arrangements made under the Criminal Injuries Compensation Act 1995 (c. 53),
(b)
arrangements made by the Secretary of State for compensation for criminal injuries in operation before the commencement of those schemes, or
(c)
the scheme established under the Criminal Injuries (Northern Ireland) Order 2002 (S.I. 2002/796) (N.I.1), and
“personal injury” includes disease and impairment of physical or mental condition.