alwaysinterested

I have made a discrimination claim against my previous employer. The employer tried to get the case dismissed but the Employment Tribunal judge ruled that it could proceed to trial. The employer has now agreed to settle out of court and make a settlement payment. I understand that the element that relates to an unpaid bonus will be liable to income tax and that the employer should deduct income tax and any applicable NI. I have also seen a number of articles that show that a person who receives compensation or damages whether by court action, arbitration or a negotiated out of court settlement as a result of a cause of action may be regarded as having disposed of or as having derived a capital sum from a right of action. Does this mean that this element of the compensation payment falls under capital gains tax rather than income tax?