Tax on court judgments expected to see 39% reserve hike

Professional lines insurers may be forced to bolster reserves by
up to 39 percent after a stealth tax change that could see UK
Commercial Court awards and settlements subject to duty.
For years there has been a discretionary concession in place
preventing Her Majesty's Revenue and Customs (HMRC) from taxing
damages and settlements, but that could be set to change.
In January, HMRC changed the wording of tax forms giving it the
"discretionary" power to tax settlements and damages
aw