Redundancy for health reasons

Thorne_3

I was made redundant on health reasons following being off work for a long time after a really bad car crash, I was retained by the company on a employee insurance scheme which helps support the employee for such occurrences , I was finally given the redundancy and a payment to compensate, on this redundancy payment the tax was deducted as would be for a normal redundancy so the first 30k was tax free but anything above that was taxed at the higher rate of 40%.

I still have health problems from the crash and what I keep being told by various people is that since i was made redundant of a health basis that the entire redundancy payment should have been tax free, I have also seen this written in a tax guide book but unable to find anything official from the tax office.

Does anyone know or have experience of redundancy through ill health and the tax situation, if it is a tax free payment.