Parents used 3rd party for PPI claim, they're now claiming the tax man needs his cut?

-taff

They can certainly ask for that.

Makes no difference to the amount they'll have to pay the CAG though because they'll want their 38% from the total returned, not a percentage of the capital and interest less the tax....

WorthyCandidate

Is this the case for interest that is reimbursed for credit cards?

For example banks are required to reimburse premiums plus interest levied on those premiums i.e. the regular interest on your credit card bill.

-taff

Yes, but only interest levied on the PPI portion, not on the capital. And the 8% is only paid on an amount the card would have been in credit.

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html#_Redress_for_mis-sold_

WorthyCandidate

-taff wrote: »

Yes, but only interest levied on the PPI portion, not on the capital. And the 8% is only paid on an amount the card would have been in credit.

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html#_Redress_for_mis-sold_

Thanks, this was my assumption given that the interest on the outstanding balance (including ppi premiums) is not 'new money' arising from a successful claim.

WHereas the 8% is and would have been taxed had an individual invested the PPI premiums and receoved a return from another such use of the funds.