Success on packaged account but charged tax
Comments
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Tax is never owed on the redress.
Only on the interest element (if applicable).Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0 -
Thanks again for the correction, I'll be sure to pedantically respond with more carefully-worded posts in future.
Only on the interest element (if applicable).
I'm at a loss as to how this helps the OP's position in any way?
They've paid tax which they may (or may not) be liable for. If they are not liable, they can claim a refund.
They say they haven't paid tax on previous PPI complaints. If they are liable, they still owe HMRC.0 -
I wasn't being pedantic.
You stated above (and on previous posts) that tax is owed on the redress itself.
I was merely pointing out that it isn't.
Only on the cases where interest is added, tax may be paid on that element - but not in all cases. It depends on the type of redress.
Full details of the 20 different types of compensation and how they affect the tax position is detailed on the FOS & HMRC sites.Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0
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