A payment by a Bermuda company to a director shareholder in full and final settlement of the individual’s litigation against the company was a taxable capital sum relating to the forfeiture or surrender of litigation rights and was not exempt compensation for personal injury.  
 
The appellant was a shareholder and member of the board of directors of a Bermuda-based company (‘O’). In 2009, the appellant was removed from the board of directors and allegedly shut out from O’s business. The appellant, therefore, instructed lawyers to “try to get to the bottom of what was happening with the company”. 
 
In 2012, the appellant commenced proceedings against O in the Supreme Court of Bermuda. In September 2013, the appellant and O reached an agreement that another company ((‘C’), as successor to O) would pay the appellant £1 million in full and final settlement