Copyright infringement - compensation

Dottie

A client who is a photographer has received £1500 "damages" for copyright infringement. A photograph was used in a publication without his permission.

He thinks it is not taxable, but I think it may be. I would be grateful if anyone can clarify this for me.

Thanks Dottie

stefanboro

Hi Dottie,

This extract of the Business Income Manual would suggest it is taxable:

http://www.hmrc.gov.uk/manuals/bimmanual/bim40105.htm

The key consideration is whether or not the damages are directly referable to trading operations.

In this case it would appear as though this is the case methinks.

Monsoon

It is taxable.