Sarah P
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Is Part 36 settlement in respect to property dispute taxable?
Hello, I resided in my family home for 8 years following separation from my partner who was the sole owner and mortgagee on the property. I paid the mortgage before and after separation indirectly and therefore felt this afforded me a beneficial interest in the property. My partner refuted this and after much litigation we settled via a part 36 offer made to me reflecting the exact amount I had invested. They made this offer to ‘resolve the dispute’ and not in recognition of my interest in the property. They have since reported this payment to me to CMS and are arguing it is taxable income. Is this the case? Appreciate any guidance.