The Finance Act 1992 Part 7 introduced automatic reporting requirements for traders, professionals, agents and other relevant persons as defined. A Statement of Practice was issued by the Revenue Commissioners on the 28 October 1992 (SP-IT1/1992). Modifications of these reporting requirements for Solicitors were summarised in Tax Practice Notes volume 1 issue 2 (August '93).

The Revenue Statement of Practice clarifies the reporting obligations applying to the specified categories of persons. Under the category "persons in receipts of income belonging to others" it provides that Court awards/settlements need only be returned to the extent that they include specific non-capital amounts for loss of earnings or profits or other income amounts. Following representations from the Law Society, the Revenue Commissioners have since confirmed that in personal injury cases, where an award/settlement may include special damages for past or future loss of earnings, no information return is required save and except in the following circumstances .

1. Payments made without deduction of tax under a loss of profits/emoluments insurance policy.

• an insurance policy taken out by an employer to provide against an obligation to pay compensation on sickness, injury or death of an employee or against the employer's general liability to pay compensation for occupational injuries;
• a policy taken out by an employer which insures against loss of profits consequent upon sickness, accident or death of an employee;
• a policy of insurance taken out by an employee or self-employed individual which provides for continuing benefit (whether or not capable of being commuted) during disablement through accident or sickness;
• a sick pay scheme/arrangement or Trust Deed which provides for continuing benefit (whether or not capable of being commuted) during sickness or disablement through accident or sickness;
• permanent health insurance policy taken out by an employee or self-employed individual.

1. Structured settlements where the payments constitute annuities or annual payments which have not already been subjected to deduction of tax when received. This would only apply in the (rare) event that the Court, in lieu of a lump sum, awarded an annual income for life or during disability.
2. To the extent that there is yearly interest, interest on the award or part of the award or interest for late payment (only the interest element need be returned and again only if it exceeds £500.00 in a year).