s 751 Interest on damages for personal injury
(1) No liability to income tax arises in respect of interest on damages for personal injury or death if— (a) it is included in a sum awarded by a court, (b) it does not relate to the period between the making and satisfaction of the award, and (c) in the case of an award by a court in a country outside the United Kingdom, it is exempt from any charge to tax in that place. (2) No liability to income tax arises in respect of interest if— (a) it is included in a payment in satisfaction of a cause of action (including a payment into court), and (b) it would fall within subsection (1) if it were included in a sum awarded by a court in respect of a cause of action. (3) In subsection (1)— “ damages ” in Scotland includes solatium, and “ personal injury ” includes disease and impairment of physical or mental condition.