The Discount Rate For Personal Injury Lump Sum Compensation Payments – Announcement By The Lord Chancellor

WS
Wrigleys Solicitors

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Wrigleys is a specialist firm of solicitors that concentrates on:
  • Agriculture and rural property
  • Charities and the social economy
  • Education
  • Employment
  • Families
  • Injured
  • Pensions
  • Property
As one of the leading specialist practices outside London, we are recognised as experts in our specialist areas and give practical, common sense, and technically excellent advice to our clients with whom we form valued long-term relationships.
We are pleased that the Lord Chancellor has announced the discount rate for personal injury lump sum compensation payments.
United Kingdom Litigation, Mediation & Arbitration

We are pleased that the Lord Chancellor has announced the discount rate for personal injury lump sum compensation payments.

The discount rate governs the amount of money a client should receive when they are paid compensation now for expenditure that will happen in the future.  That could be to purchase an adapted vehicle or equipment for example.

Under the Damages Act 1996, the Lord Chancellor needs to consider certain factors when deciding what the rate should be.

  • actual returns available to investors;
  • actual investments made by investors of relevant damages;
  • such allowances for tax, inflation and investment management costs as thought appropriate; and
  • wider economic factors.

The rate is now minus 0.25%.

We are very pleased that there is now clarity about this after a long period of uncertainty.  We are also hopeful that clients whose cases have been in limbo during the discount rate consultation and decision will be able to see their cases settled and move on with the next chapter of their lives.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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