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Where Taxpayers and Advisers Meet

Tax on pension compensation

mld1960
Posts:1
Joined:Thu Jul 22, 2021 5:19 pm
Tax on pension compensation

Postby mld1960 » Thu Jul 22, 2021 5:25 pm

I've recently received compensation from FSCS in respect of my SIPP - resultant from failed due diligence from the pension administrator.

Do I need to pay Tax on this?

Any advice appreciated

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm

Re: Tax on pension compensation

Postby Jholm » Fri Jul 23, 2021 11:04 am

I think it depends on the nature of the compensation. Normally the paperwork will give you a suggestion.

As a general rule, if the compensation relates in some way to loss of income/earnings, then it is taxable.


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