Regulation 14 Structured Settlements

(1)

This regulation applies where a person—

(a)

in final settlement of a claim, enters into an agreement—

(i)

for the making of periodical compensation payments (whether of an income or capital nature); or

(ii)

for the making of such payments and lump sum payments; and

(b)

apart from the provisions of this regulation, those payments would fall to be treated for the purposes of the Act as compensation payments.

(2)

Where this regulation applies—

(a)

the person making the payment shall be taken to have made on the day of agreement a single compensation payment;

(b)

payments under the agreement referred to in paragraph (1)(a), and any other payment made after the day of agreement in respect of the same incident shall be taken not to be compensation payments.

(3)

In this regulation “the day of agreement” means—

(a)

if the agreement referred to in paragraph (1)(a) is approved by the court, the day on which that approval is given; and

(b)

in any other case, the day on which the agreement is entered into.