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bigduckontax, Accountant
Category: Tax
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I am now a fully retired NHS Clinical consultant who has

Resolved Question:

I am now a fully retired NHS Clinical consultant who has recently been awarded compensation for a mis-sold FSAVC in the 1990's. Please could you advise what tax liability I have as there appears to be much confusion about the tax status of such compensation payments.
Thank you.
Michael Craggs
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

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.

Customer: replied 1 year ago.
Thank you that it very clear. However, is there some current documentary authority for this decision e.g. HMRC guidance note?
Expert:  bigduckontax replied 1 year ago.

I did hunt for such guidance, but it is conspicuous in its absence!

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Expert:  bigduckontax replied 1 year ago.

Thank you for your support.

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