Tax rate for redemption sum for rental property

Questioner

My landlord would like to buy me out so that he can renovate my rental property and rent it out for a much higher rent. I myself may be able to rent another house, but I will then be worse off in terms of surface area and neighborhood, so I may accept this buyout sum depending on that. Now I wonder whether I have to pay tax on the buyout sum. I have heard different sounds about this. According to some lawyers, I have to pay a high tax rate in full, which is added to my income, but according to other lawyers this can be taxed in box 3 and only after deduction of the tax-free capital. Since the tax-free capital for 2021 is 50,000 and I own nothing else, would this mean that I do not pay tax on an amount below 50,000? And another question; if the latter does not appear to be an option, is it possible to receive a tax-free buyout sum in another way? For example, I have lived with terrible leaks for a number of years with this tenant. Suppose I were to consider the buyout sum as the title of compensation plus moving costs in this case, would this then be tax-free, for example? Thanks in advance, Kind regards,

Lawyer

As soon as it appears that you are trying to avoid paying taxes, i.e. evasion, you may get into trouble. The dispute must be reported within a reasonable time, for example as a defect in the rented property. Can you prove that? Only personal injury can be considered tax-free. I think that you would be better off asking your further questions to a tax specialist.