Earn-out payments and how do I record them on my tax return?

Hi, I received an earn-out payment 2 years after I sold my shares in a company that was bought out by another company. I claimed BADR in that year which wiped out my full £1m allowance. I have received an unexpected earn-out payment from the company in the 2023/24 tax year. I have had no involvment in the company since I sold my shares 2 years ago. I need to pay tax on my earn-out but I am struggling to find where to enter this on my tax return. Is this classed at Capital Gains or is this deemed Other Income? Help is greatly appreciated. Thanks, Ham

Hi,
It depends on the reason given. please refer to:
ERSM110910 - Securities Options: earn-outs: overview of liability
Thank you.

Thank you forthe reply. The earn-out is then subject to income tax and NIC, Which section does this then get entered into my tax return? Does the payment go into - Other Income - ''Employment lump sums, compensation and deductions and certain post-employment income''? Thank you 

Name removed admin .

Hi,
This payment is actually treated as capital gains as it would be seen as a further sale. You can see the guidance here:
ERSM110940 - Securities Options: earn-outs: key indicators of earn-out being sale consideration
Thank you.