Report Endowment Misselling Compensation SUCCESSES

dunstonh

danlojo wrote: »

Yes it does but is 20% right?

Thanks

They deduct 20% at source. If you are a basic rate taxpayer you have no further liability. If you are non taxpayer you can claim it back. If you are a higher rate taxpayer you have to declare it and pay higher rate tax on it.

danlojo

Last question.....honest :rolleyes:

The endowment is in both our names (mine and hubby) he is a tax payer and I am not, does that mean I can claim my part back?

Calm_Blue

We sold our endowment back in 2003 cos we could see it was going down the pan! I realised afterwards that we were missold our endowment, largely because no other mortgage options (i.e. repayment) were discussed.....and we were only babies and didn't realise that you were supposed to be anything other than grateful to be offered a mortgage (well this was the 80s!)
However, after reading your site I decided to give it a go, using your templates. It was easy, although I suspect if I hadn't chased them occasionally that nothing more would have happened!
The good news is that we have just received a cheque for £4795!
Thanks for all your help!:j
Endowment company - Royal Life, now Phoenix.

Crazy_Saver

dunstonh wrote: »

They deduct 20% at source. If you are a basic rate taxpayer you have no further liability. If you are non taxpayer you can claim it back. If you are a higher rate taxpayer you have to declare it and pay higher rate tax on it.

20% !!!!

Why so high dunstonh?

dunstonh

Crazy_Saver wrote: »

20% !!!!

Why so high dunstonh?

20% is savings tax at source. A higher rate taxpayer has to pay another 20% on top. Its exactly the same as money in the bank.

Remember this is 20% of only the interest elment. Not the full redress. Unless its refund of premiums plus interest, you usually find there is no interest payment on the redress or if there is then its only for a week or two's worth of interest and is a few pence or low pounds.

Crazy_Saver

dunstonh wrote: »

20% is savings tax at source. A higher rate taxpayer has to pay another 20% on top. Its exactly the same as money in the bank.

Remember this is 20% of only the interest elment. Not the full redress. Unless its refund of premiums plus interest, you usually find there is no interest payment on the redress or if there is then its only for a week or two's worth of interest and is a few pence or low pounds.

This just proves how easy it is to run rings round novices like me (and probably many others on these boards). I had no idea that savings were taxed at 20%.

The FOS upheld the churning part of our claim (unfortunately it's still being challenged by the firm!), offering us interest on our payments of 8%. Would we then have to pay 20% tax on that if we ever get it?

dunstonh

The FOS upheld the churning part of our claim (unfortunately it's still being challenged by the firm!), offering us interest on our payments of 8%. Would we then have to pay 20% tax on that if we ever get it?

When you eventually get it They will calculate 8% but deduct 20% before you see it and you will be given a certificate of interest and tax paid (just like you get on bank accounts this time of the year).

Crazy_Saver

When you eventually get it

I appreciate your optimism dunstonh:D

treliac

mayb wrote: »

?? savings rate tax - I don't remember paying tax on my recompense money but it was a long time ago now - not something you would forget really as it is not savings and tax was paid on the money earned to pay the endowment. Your recompense is meant to put you back into the position you would have been in if you had a repayment mortgage at outset - it is not giving you back your savings. Hope somebody can give you more info on this one.

I believe we were advised, along with our redress payment, that it had been taxed. No more specific detail, just confirmation that tax had been deducted - on the interest part only.

mr_pheasant

I have a legal and general endowment maturing it is falling short how do i know they are paying the correct amount