Tax Credits and treatment of Compensation payment for relocation of job

Hi can anyone point me to the Regs in relation to how TCO will treat a compensation payment.

I have someone who is being offered circs £1250 due to re-location of jobs.

They have been given 3 options:

1 - take the lump sum payment in a one-off payment
2 - take the offer and spread over 12 months
3 - decline the lump sum and claim expenses throughout the year.

I can see that this does not fall within the normal compensation payouts and wondering if anyone else has had this scenario and how do HMRC treat this?

Many thanks

The general rule is that anything included on this page will be disregarded for tax credits too.

thanks, very helpful