Summary
1.Section 33 ensures that people who have or will receive compensation from the Financial Services Compensation Scheme (FSCS) that includes a payment representing interest are taxed in the same way as if the payment were interest paid by the financial institution that went into default. Where the FSCS has calculated a payment as if it were interest (accrued but unpaid by the financial institution) from which tax had been deducted then the section enables the recipient to treat the amount deducted by the FSCS in the same way as if it were tax deducted from interest.
