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When I asked this question to my lawyer (divorce lawyer) she said they are not FSA regulated and cannot say for sure. However at the end she said it is taxable, speak to your bank's financial advisor. The reason I can't ask her things in detail is because my legal aid has been suspended as of now , so she is not liable to work on my behalf.
So plz confirm if my understanding is correct, the lumpsum money I get as divorce settlement will not be considered as my income and hence I dont pay any kind of tax whatsoever on that amount in UK.
Only if I put it in investment will I have to pay tax as applicable.
Can my husband claim back the tax he paid on that amount??
Thanks for your help.
yes we are both based in UK.
He is going to pay from his earnings, so he is paying income tax on it.. Can he claim it back as he is giving that earning as divcorce settlement amt.
Does it depend on the amount or how my husband is going to pay the amt?
Curious as you had asked me the amount and how he is going to pay and within how many days. In what scenario is divorce settlement money taxable. Just want to make sure I dont get taxed on it before I invest it.
He has arranged it by taking personal loan + savings.
Thanks a lot for your help.