Does my brother need to pay tax from Prison?

$ for compensation for bodily harm may not attract taxes, as it is deem capital - restitution due to bodily harm. Talk to a US CPA. 

The money being sent to you to put in your bank would be counted against your taxation liabilities.

The initial windfall payment your brother received as compensation would count against his taxation liabilities at the time he received it. But as he’s earning sod all else it would not have actually incurred any taxes.

If your brother makes you his legal appointee then you can open a savings account in his name and you can put any money he sends straight into his account. He could also send funds directly to his account from prison. That way, no money has to pass through your accounts and you then don’t have potential taxation liabilities accruing from what is really his money. 

But to answer your basic question: imprisonment does not give any freedom from the same taxation liabilities which the inmate would have outside of prison.

@Tavy

As I mentioned above, he is in prison so he doesn't have access to a UK bank account, only prison account which according to the new law now do not let inmates keep more than £900 in their accounts.

If it's in your account, it's your money, and your responsibility.

If this is from illegal actions, this also makes you an accessory.

From where has this money come from?

Why does he not have his own bank account?UK

Edit. How on earth has he amassed this amount of money? U.K. prisoners get a small amount to buy sweets and toiletries. How is he sending it to you? I worked for HMP

Thanks for your update. I think you should talk to your bank about this. We don't pay tax on current bank accounts. They might be able to open a savings account for him. or for you where you can transfer his money.