Copyright infringement - compensation

Dottie Registered Posts: 99 Regular contributor ⭐
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
    stefanboro Registered Posts: 187 Dedicated contributor 🦉
    Hi Dottie,

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

    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
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    It is taxable.
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