Hi
Perhaps somebody could kindly advise on the following issue.
A while ago I invested in several separate investments (all via the same company). However, some time after making the investments it became evident (in my opinion) that the company concerned had effectively mis-sold the investments due to misleading promotions of the investments. I complained to the company about the issue, but they denied any wrongdoing, however following my complaint the company unfairly tried to cease my investor relationship with them, even though I had several other unrelated existing investments with them. The company also removed me from their news, updates and new promotions mailing lists, and effectively barred me from making any future investments. I took my complaints to the Financial Ombudsman Service (FOS) regarding what I considered to be both the misleading promotions of specific investments, and the unfair and unreasonable treatment I had experienced from the company in response to my complaint.
The FOS considered the various aspects of my complaints and ultimately decided that it proposed to uphold them.
Following this, a fair settlement proposal made by the FOS was accepted by myself and the company which would also permanently terminate my investor relationship with the company. The case with the FOS was therefore closed without the need for a final decision.
A single payment in the region of £7,000 was recently paid to me by the company in full settlement based upon the compensation calculation proposed by the FOS.
This single compensation payment may however be considered to apply to two separate issues. Around £2,000 was compensation for the investments which did not deliver the returns as promoted, so this part of the compensation was simply to make up for the investment under-performance or losses. The remaining £5,000 is a compensation/goodwill payment for the unfair treatment experienced and for the agreed termination of my investor relationship.
Could somebody please advise if income or capital gains tax applies to all or any part of the single £7,000 compensation/goodwill/settlement payment?
Thank you for any advice.
RJS
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