Should substantial awards of damages be adjusted to reflect the incidence of the higher rate or rates of tax on income derived from compensation payments?

In Thomas v Wignall and South Glamorgan Area Health Authority [1987] QB 1098, a majority of the Court of Appeal took the view that while no adjustment should be necessary for future inflation because inflation would normally generate higher interest rates to offset it, there might be cases where higher interest rates would attract higher rates of tax, and in such cases it would be just to take the incidence of higher taxation into account when assessing damages.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.