Hello Michael, I am Keith, one of the experts on Just Answer, and pleased to be ble to help you with your question.
The compensation itself comes to you tax free. However, if there are elements of interest within the total paid then these are subject to Income tax (IT) in the hands of the recipient at their mrginal rate and must be declared on their annual self assessment tax return.
I do hope that I ahve been able to clear the ir for you.
I did hunt for such guidance, but it is conspicuous in its absence!
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Thank you for your support.