Depends on;
What does the payment cover?
If The cover is to compensate for the revenue loss, then the answer is ‘YES’,the payment is taxable for income tax.
If it is to replace an asset, capital gain rules apply.
The compensation payment for an asset is taxable as a capital gain. However, if the unused compensation amount is relatively small you can opt to defer the gain until the building is sold. This might not always be the most tax-efficient option in a future year, so it could be more tax efficient not to defer.
