It is possible. Personal injury claims have specific legislation around them which means that if you won a small claim that related to personal injury, you would not have to pay tax.

However, if the small claim is wholly commercial e.g., it relates to money you are owed from a business deal, it is possible that you will be taxed on any award you receive. The reason for this is partly because the money will be considered as income, but the law around this is specific to the type of claim you are filing, so do your research and get legal advice if you feel you need it.

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