Compensation for poor pension investment taxable?

I have a client who has been awarded £50k from the Financial Services Compensation Scheme

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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?

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By Jholm
13th Jul 2018 16:12

Yes and in our instance is was not taxable.

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