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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have received compensation from FSCS on an amount due for

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I have received compensation from FSCS on an amount due for mis-selling of shares over a number of years. Is the capital amount subject to Capital Gains? Also interest is it taxed in year received or spread over the years to which it relates?
JA: What are the assets or property for this capital gain?
Customer: AIM shares
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: No

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly


The capital is not subject to capital gains as you are merely compensated for the lost money you invested but the interest is liable to income tax in the year the compensation is paid (so not spread over the year to which it applies)



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