PPI tax

$izzle$

Hi, I have successfully applied for PPI on my late husbands' Egg Loan and Card.
There is tax to be taken off, but as my husband passed away 6 years ago I am not sure who I need to speak to to find out if it is HIS tax, to then get it refund, or if the tax will be applied to me as the beneficiary?
PAYE sent me to Inheritance tax and Inheritance tax said it is dealt with by PAYE ....really helpful!
Any advice please?

[Deleted User]

The tax is on the interest earned and is classed as income. The refund itself is not taxed.

You'll only be able to reclaim it if the amount awarded does not take you over your tax-free threshold or if you are not a tax-payer.

http://www.moneysavingexpert.com/news/reclaim/2011/11/got-a-ppi-payout-you-probably-owe-tax

$izzle$

Thank you.
So although the accounts are in my late husbands' name, I will have to pay the tax in my name as I am the beneficiary, is that correct?
It's not a problem, I am happy for them to deduct it, just wasn't sure if I would receive the tax back as a refund from HMR as my late husband is obviously no longer liable to pay tax!
I am a tax payer, as I receive my late husbands' company pension.

Many thanks

[Deleted User]

$izzle$ wrote: »

my late husband is obviously no longer liable to pay tax

As he's obviously also not at liberty to receive his PPI redress, any tax liability is yours.

Geoff1963

The tax is only on the 8% compensatory interest, and some companies deduct at the 20% rate before they pass it on.

-taff

And you can claim it back if you haven't/won't earn over £1000 in interest attached to savings over the year.

$izzle$

Sorry for the delay.
Many thanks for your help.