Are Insurance Settlements Taxable Uk. While the life insurance payout itself is not in itself taxable in the uk, in some circumstances the person who receives it may have to pay tax. Are property damages settlements taxable?
Paye settlement agreement (psa) 4.4. Whether or not payments made under a settlement agreement are taxable depends on to what the particular payment relates. This notice cancels and replaces notice 701/36 (1 march 2019).