My client moved pension funds from an employment pension scheme into a private pension scheme. As a result of mis-managment the fund reduced by some £400,000. He made a claim and was awarded by the "Financial Services Compensation Scheme" the maximum amount of £50,000 compensation.
Is any or some of this taxable. There is no particular breakdown of the sum paid but I think it might include some interest which of course will have to be declared. But what about the balance
Anyone else come across this?