MoneyWeek- Tax on compensation payouts

Hello,

I am writing a piece for MoneyWeek this morning looking at compensation payouts and tax liabilities.

It comes as subpostmasters who were victims of the Horizon computer scandal are due for £600,000 redress.

Two out of the three previous Post Office redress schemes have been tax-free but the Horizon Shortfall Scheme wasn't, meaning the Post Office has had to issue top ups.

I am keen for views on if the latest payouts should be tax-free and also more generally, what are the tax rules for redress/compensation payouts?

How can people prepare financially/tax-wise for receiving redress?

Kind regards, Marc