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Are repayments from mis-selling subject to income tax or capital gains?
jarthurs
Posts: 56 Forumite
I've recently had a claim for mis-selling upheld against City Financial Partners Ltd. The settlement represents a repayment of my original premiums plus interest. They are deducting 20% tax from the interest and issuing a Certificate of Tax Deducted for that value.
Do I have to pay income tax or capital gains on a lump sum I receive as repayment for mis-selling?
Regards,
Jason.
Do I have to pay income tax or capital gains on a lump sum I receive as repayment for mis-selling?
Regards,
Jason.
0
Comments
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It's the interest which is taxable income, not the actual repayment. It's not subject to Capital Gains Tax as well.0
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