ppi reclaims

lukie28

do you have to pay tax on the money you get back from reclaimed ppi charges....???

dunstonh

If it includes the addition of interest then you are charged tax at basic rate on that interest. If you are non taxpayer you can claim it back. If you are a higher rate taxpayer you have to declare it to HMRC under self assessment and pay the difference to higher rate.

lukie28

so you don't pay the 15.5% tax on the inital ammount, just on the interest

dunstonh

Tax on interest is 20% at source and its only on the interest element of the award. e.g. return of premiums plus interest would see tax only being charged on the interest. Not the return of premiums.

PaulinWeston

http://forums.moneysavingexpert.com/showthread.html?t=1331201

lukie28

thanks for your help , very useful info, got some ammunition now.......