Structured Settlement Agreement for the United Kingdom

Structured Settlement Agreement Template for England and Wales

A Structured Settlement Agreement under English and Welsh law is a legally binding document that establishes a schedule of periodic payments to settle a claim, typically involving personal injury or significant compensation. It provides for regular, guaranteed payments over an extended period rather than a single lump sum, often with provisions for inflation adjustment and specific payment triggers. The agreement is governed by English and Welsh law and must comply with the Civil Procedure Rules and relevant legislation.

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What is a Structured Settlement Agreement?

A Structured Settlement Agreement is utilized when parties wish to resolve a dispute through scheduled payments rather than a lump sum settlement. This document type is particularly common in personal injury, medical negligence, and substantial compensation cases under English and Welsh law. The agreement details payment schedules, tax implications, and often includes provisions for inflation adjustment and specific payment triggers. It provides security for the recipient while potentially offering tax advantages and financial planning benefits for both parties. The document must comply with relevant legislation including the Damages Act 1996 and Civil Procedure Rules.

What sections should be included in a Structured Settlement Agreement?

1. Parties: Identification and details of all parties to the settlement

2. Background: Context of the dispute and reason for settlement

3. Definitions: Key terms used throughout the agreement

4. Settlement Sum: Total amount and payment structure

5. Payment Terms: Timing and method of payments

6. Release and Discharge: Mutual release of claims

7. Confidentiality: Terms of confidentiality regarding the settlement

What sections are optional to include in a Structured Settlement Agreement?

1. Tax Provisions: Section detailing tax treatment of payments and responsibilities of parties for tax liabilities

2. Interest Provisions: Terms governing interest calculations and payments on delayed or structured payments

3. Variation Clause: Provisions allowing for modification of payment schedule under specified circumstances

4. Court Approval: Provisions requiring court approval where protected parties are involved

What schedules should be included in a Structured Settlement Agreement?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and payment mechanisms

2. Security Documents: Details of any security arrangements or guarantees for ensuring payment compliance

3. Tax Schedule: Detailed breakdown of tax treatment for different payment components

4. Original Claim Documents: Reference documents from the original dispute including claim details and supporting evidence

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Industries

Civil Procedure Rules 1998: Key procedural rules governing settlements, particularly Part 36 (Offers to Settle) and Part 21 (Children and Protected Parties). Essential for procedural compliance in settlement agreements.

Damages Act 1996: Crucial legislation governing periodical payments and the ability to vary payment terms in structured settlements. Provides framework for periodic payment arrangements.

Courts Act 2003: Contains important provisions regarding the enforcement of settlements and court powers in relation to settlement agreements.

Limitation Act 1980: Sets out time limits for bringing claims and has implications for payment schedules in structured settlements.

Law of Property (Miscellaneous Provisions) Act 1989: Fundamental contract law legislation affecting the formal requirements for creating legally binding agreements.

Income Tax Act 2007: Tax legislation relevant to the treatment of settlement payments and periodic payments for tax purposes.

Taxation of Chargeable Gains Act 1992: Governs tax implications for lump sum payments and capital gains aspects of settlements.

Mental Capacity Act 2005: Critical legislation when dealing with parties who may lack capacity to enter into settlement agreements, including requirements for court approval.

Financial Services and Markets Act 2000: Relevant when settlement involves regulated financial products or structured financial arrangements.

Late Payment of Commercial Debts (Interest) Act 1998: Governs interest on judgment debts and late payments, relevant for enforcement and payment terms in settlement agreements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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