When conducting litigation, a key concern is obtaining certainty of outcome. However, the tax treatment of any compensation is all too often overlooked.
Not all types of compensation are subject to a tax liability, but a number are.
Timely, practical advice (and more than likely input from tax specialists) will ensure the best outcome for clients and avoid potential negligence.
Elliot Elsey explains in Solicitors Journal the tax treatment of compensation and the need for practitioners to secure expert advice from tax specialists.
When compensation can prove taxing is free to read via pdf.
Elliot is a partner in the commercial litigation team.
Elliot advises on a broad range of disputes involving individuals, charities, and businesses across a large number of sectors, including digital marketing, retail, property development and other legal professionals.