Interest on PPI Repayments and PSA

mmh26

I've recently been successful in getting redress on PPI paid to RBS.

RBS has paid interest on the amount, but has also deducted tax from the interest figure to pay it directly to HMRC on my behalf.

My question is, can this interest on PPI repayments count towards my Personal Savings Allowance, and therefore can I claim it back from HMRC if it will not take me over my threshold for interest from savings?

I'm tempted to fill in R40 for a reclaim from HMRC, but would like to know if I have a leg to stand on!! Any advice would be much appreciated. Many thanks.

[Deleted User]

mmh26 wrote: »

can this interest on PPI repayments count towards my Personal Savings Allowance

No.
The interest is income, not savings.

You can certainly save the money and not pay any additional tax (if it does not exceed your allowance, of course).

mmh26 wrote: »

I'm tempted to fill in R40 for a reclaim from HMRC,

Why would you do this? Contacting HMRC directly and asking first is surely the most prudent action?