Structured Settlements in the United Kingdom
The Acts covering the award of structured settlements in the United Kingdom are the Damages Act 1996 and the Income and Corporation Taxes Act 1988. Annuitants are protected against liquidation of the insurer by the Policyholders Protection Act 1975 (Sections 10 and 11) to the full amount of the liability, benefit or value of the annuity. Section 3 does not extend to Scotland, otherwise the Damages Act applies to the whole of the United Kingdom.
Tax advantages are granted on that part of the settlement which is to be paid in instalments.
Courts may only order a structured settlement with the agreement of both the plaintiff and the defendent.
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