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FCSC Paid me Compensation, liable for tax?
ajw1100
Posts: 60 Forumite
in Cutting tax
In 2006 my FA mis-sold me a SIPP, in 2008 most of the fund went into liquidation, my FA went into liquidation in early 2009, his insurance company disowned any claim due to non disclosure of facts . I then submitted a claim to the FSCS, the result of which is a cheque 8 months later for £48k. That is a lot less than the amount I lost.
I have the cheque but am concerned that in the future the I.R might see it as a gain or income and tax me on it.
The amount is certainly not any gain as it does not cover my losses. I have no income due to redundancy and am living off savings.
I have looked at the HMRC website info SAIM2340, CG13080 and CG13083 but am still not sure of my position as the info is way over my head.
Thank you.
How do I make sure the I.R do not tax me on the money?
I have the cheque but am concerned that in the future the I.R might see it as a gain or income and tax me on it.
The amount is certainly not any gain as it does not cover my losses. I have no income due to redundancy and am living off savings.
I have looked at the HMRC website info SAIM2340, CG13080 and CG13083 but am still not sure of my position as the info is way over my head.
Thank you.
How do I make sure the I.R do not tax me on the money?
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