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Tax implications of PPI repayment

dodo2761
dodo2761 Posts: 6 Forumite
edited 19 September 2011 at 3:52PM in Reclaim PPI & other insurance
I have just been informed I will get about £3500 as a PPI repayment. In the letter it said it may be subject to tax.
Is this correct?
I will have paid tax on the payments i made when I earned them.
Surely the only tax implication would be the interest?

Anyone help?

Comments

  • I think you are correct, just the interest
    LBM 20/7/2011
    Starting debt £52k Approx Debt Free August 2016
    HSBC Loan now £0 thanks to PPI miss sell
    Debt Free now March 2016 (Thanks HSBC)
    Debt now £45k
  • dunstonh
    dunstonh Posts: 121,294 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is this correct?

    Yes. Interest is subject to tax in the UK.
    Surely the only tax implication would be the interest?

    correct.
    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.
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