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paying tax on endowment compensation
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katyjinny
Posts: 25 Forumite
I received a cheque for £1300 in settlement of my complaint. In amongst the complicated calculations was almost £4000 interest. My accountant says I have to pay 20% income tax on this which will mean that my actual compensation will be reduced to around £500. Does this sound right?
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Comments
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If the settlement includes interest payments then it is correct that it is liable for tax.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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