Mv77777

Hi, I am about to receive £50,000 in compensation to be paid directly to me as a result of some unsuitable pension advice from 2008. The loss was incurred because the adviser recommended I transfer my existing pension into a new pension plan, which wasn't suitable for me and my circumstances. As a result of this unsuitable advice, the FSCS calculated I incurred a loss of £94,000 which is the difference between what my pension would have been worth had it not been transferred, compared to what it is worth today. However, the FSCS compensation limits are restricted to a maximum of £50,000. Am I due to pay any income or capital gains tax on this sum? If so, how do I calculate how much tax I should pay? If the payment is taxable, does the fact that my loss is actually £94,000 but I have only received £50,000, get factored in? As I am still not back in the position I should have been in, due to the cap on compensation from the FSCS.