Income from property seller due to seller moved out later than agreed date

Dear Sir/Madam, good afternoon. I am purchasing a residential property. can I please ask if the compensation of GBP 1,365 which is compensated by the seller as he did not moved out of the property as agreed in the property sales contract and he paid this amount to me as some kind of compensation arising from the contract, is taxable income or not? thank you for your kind clarification. Best regards LT

Hi L T,
The guidance at CG13030 advises "Sums received as compensation or damages for any wrong or injury" (in this case breach of contract) "suffered by an individual in his person or in his profession or vocation are not chargeable to Capital Gains Tax because of section 51 (2) TCGA 1992". CG13030 - Compensation: personal compensation or damages
Thank you. 

Dear Sir/Madam, Thank you for your kind reply. This clarifies that it is not subject to CGT. Can I please kindly ask if it is subject to personal income tax? Kind regards LT

Hi,

As it is compensation it is not liable to Income Tax.

Thank you.

Dear Sir/Madam, Thank you so much for your kind clarification, Best regards LT