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Compensation payment from proceeds of crime
Client has been awarded £60k compensation as the victim of a serious crime. The money has come through the courts via proceeds of crime.
I think it will be treated as capital for benefit purposes?
But I haven’t dealt with a situation where the money comes via proceeds of crime and just wondered if there is any disregard in these circs?
Anyone have any experience?
paragraph 12A of sched 10 of teh IS regs disregards payments “in consequence of a personal injury”. Although that’s not exhaustive it’s a start. Was your client injured?