Is this taxable income ?

Is this taxable income ?

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I have had dealings with an Independent Financial Advisor who. in the past. has paid me commissions for introductions to clients. These commissions have been treated as Income and taxed accordingly.

Recently I used this person to arrange a new pension for me personally. He waived the commission he would have earned and offered me the choice of either increasing the amount invested in the new Pension or paying his commission earned to me i.e. cheque drawn on his practice. I opted for the latter.

Initially I thought this payment is taxable. However, I have had personal dealings with this person for over twenty years and see this as a Goodwill Gesture on his part. I now feel it may not be taxable as income as it is not earned income in this particular case.

Any thoughts would be gratefully appreciated.

JOHN R

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By AnonymousUser
11th Apr 2007 13:36

I agree
The payment is not a business receipt. However, I don't think it is the fact that it is a goodwill gesture - that could be a goodwill gesture because of the amount of business passed backwards and forwards. It is because, as the previous answer states, it is a personal item.

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By AnthonyDavidMain
11th Apr 2007 12:36

I would say good news...
John,

generally, commissions, cashbacks and the like on one's own investments are free of tax.

Best regards

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By J.R.BOX
12th Apr 2007 16:26

Thanks both
Much appreciated. I'm glad you concur.

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