I have been verbally awarded a compensation figure from my bank. This was due to there failure in starting a life insurance policy over 10 years ago. To reinstate the policy additional cost is involved and serious illness cover can no longer be applied.
After much toing and froing the bank has agreed to compensate the difference in the monthly premiums from the original policy and the reinstated policy for the rest of the mortgage term (12 years), in one lump sum.
I am wondering is this lump sum liable for tax as the amount they are offering just covers the premium payment net of PAYE?
Many Thanks
After much toing and froing the bank has agreed to compensate the difference in the monthly premiums from the original policy and the reinstated policy for the rest of the mortgage term (12 years), in one lump sum.
I am wondering is this lump sum liable for tax as the amount they are offering just covers the premium payment net of PAYE?
Many Thanks