Thanks for your reply Keith. My concern was that the definition of an ex-gratia payment from HMRC is one where "...the employer makes when under no legal or contractual obligation to do so". Given that there is a current contractual obligation to pay me money (i.e. the contract to sell the stock) this is the source of my concern.
However, from your response you state that this would be a capital receipt in my books and not income, i.e. a payment received for the sale of stock.
How do I make this clear from my point of view (for my year end self-assesment). Because my ex-business partner wants me to sign a settlement agreement outlining that I will receive an ex gratia payment. Additionally, he wants the stock transfer to be a nominal amount, i.e. not include the sum of this payment. Should I insist that the stock transfer amount is to the entirety of the sale, i.e. the money already received + the 'ex-gratia' payment.
I do want to 'take the money and run' so to speak. Just want to be sure that I dont end up paying his tax bill (I dont trust him at all at this stage).