Is compensation taxable?

I'm self employed and my accountant seems to think that compensation claims are taxable. Is this right?

It is a monetary value for something already lost/suffered. It seems to me that would be unfair.  If I were employed (PAYE) I would be able to have had more time off, but I have no loss of earnings to claim as such and have been told it would be impossible to quantify the damage my injuries have had on my business, although, since I run a courier company and couldn't walk, let alone drive for 4 months, the impact has been extensive.

I was a passenger in my car, being driver at 30mph in a residential area when a 'boy racer' came round a blind bend on our side of the road at 60 mph. He killed his passenger and is now in prison.

I was lucky. Two screws in my ankle, a plate and six pins in my leg (which was an open fracture) torn ligaments in my knee.

I also suffer with PTSD, to the point that my doctor has prescribed 'beta-blockers' to control my heart rate and minimise the physical symptoms of the anxiety.

My concentration, confidence and motivation have been seriously lacking (Up until a few months ago I couldn't bring myself to answer the phone in a business I set up 8 years ago). It has impacted on literally everything I do, from work to relationships.

I don't know how much money my claim will be worth, but however much, I will deserve every penny! My sister and boyfriend (both PAYE) have both had injuries in the past.  They just banked their cheques and forgot about it, having had sick pay and time off to recover. With my injuries I went back into the office after 2 weeks...even though I was useless, but there were certain things that only I can do! And now I'm being told that the government will want some of it.  Seems a bad deal to me.

Any advice welcome )