Reclaiming Tax

DotMatrix

I noticed that my mother's invetsment had 20% tax deducted from the interest she received in her retirement years even though her total yearly income is below the £7k+ threshold where income tax starts. This has been going on for quite a few years. Do you know if I can look at reclaiming some of the tax deducted. If so, do you know how far back I can look at what has been deducted with the view to reclaiming.

Dotty

jennifernil

Read here.....

http://www.hmrc.gov.uk/incometax/tax-free-interest.htm

DotMatrix

Thank you.

I have a dilemma though as my mother has now passed away. Do you know if I still have a case.

Horseunderwater

Ring them up and speak to enquiry team. They should be able to check. My thoughts are that you might be able to go back 6 years on the interest but I am not sure if you can complete the nec authority as an executor or not. Form is called R85 by the way.

jennifernil

HMRC info here......

http://www.hmrc.gov.uk/incometax/claim-for-deceased.htm

I don't think R85 is appropriate. R85 is for registering for gross interest.

DotMatrix

Ok, I've got a bit further on this now and found out I have to complete tax form R27. On the form it asks for various details on income. As my mother was retired and received a pension credit on a monthly basis along with a private pension, do you know if income tax or any other tax would be deducted from her pension credit amount and private pension. In other words would she receive a net or gross amount in her bank account for pensions.

My mother had some funds held in bank accounts that had tax deducted at 20% of the gross interest received.
Other than her pensions and bank interest she had no other income.
I think I have good grounds to reclaim a fair bit of tax paid on bank interest as it looks like she shouldn't have paid so much
tax given her income and personal tax free allowance.

Dotty

Mikeyorks

DotMatrix wrote: »

In other words would she receive a net or gross amount in her bank account for pensions.

The pension credit isn't taxable. But her private and state pensions would be. So if you don't have P60s for the years in question ..... you are going to struggle.

The R27 only applies for the tax year of the date of death. I think you will have a problem going back beyond that. HMRC may accept R40s ...... but you need the accurate data to fill them in.

DotMatrix

Hi Mike, what about this link,

http://www.hmrc.gov.uk/incometax/claim-for-deceased.htm#4

It says I can go back to the 2005-06 tax year for income tax recalims

BoGoF

DotMatrix wrote: »

Hi Mike, what about this link,

http://www.hmrc.gov.uk/incometax/claim-for-deceased.htm#4

It says I can go back to the 2005-06 tax year for income tax recalims

That would be correct but you need the info to complete the R40 forms first.

Mikeyorks

DotMatrix wrote:

It says I can go back to the 2005-06 tax year for income tax recalims

I looked for that on the basis it must be somewhere - and didn't find it.

But - as I said earlier, do you have all the other necessary information to fill in the R40 for each year? As your earlier posts kind of suggested otherwise?