127Damages for future economic loss—discount rate

127 Damages for future economic loss—discount rate

127 Damages for future economic loss—discount rate

(cf s 71 MAA)

(1) Where an award of damages is to include compensation, assessed as a lump sum, in respect of damages for future economic loss which is referable to—

(a) deprivation or impairment of earning capacity, or

(b) loss of expectation of financial support, or

(c) the value of future services of a domestic nature or services relating to nursing and attendance, or

(d) a liability to incur expenditure in the future,

the present value of the future economic loss is to be qualified by adopting the prescribed discount rate.

(2) The prescribed discount rate is—

(a) a discount rate of the percentage prescribed by the regulations, or

(b) if no percentage is so prescribed—a discount rate of 5%.

(3) Except as provided by this section, nothing in this section affects any other law relating to the discounting of sums awarded as damages.