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Claiming back Withholding tax as a beneficiary of an estate
mj73
Posts: 11 Forumite
in Cutting tax
Can any tax experts advise how to claim back the withholding tax paid on an individual beneficiary's share of a PPI payout for a deceased person please?
The estate was settled in line with the will, but an executor made a PPI claim on behalf of the estate which was upheld. The bank have confirmed the refund will be paid to the executor, who will then pay the beneficiaries their shares in accordance with the will, because the bank accounts for the estate have already been closed. Withholding tax has been deducted from the total refund and paid directly by the bank that is paying out. The executor can't claim all of the tax back as it isn't due to him, so can the beneficiaries claim their shares of the tax back individually from HMRC and what information would they need to provide to do that?
Thanks
The estate was settled in line with the will, but an executor made a PPI claim on behalf of the estate which was upheld. The bank have confirmed the refund will be paid to the executor, who will then pay the beneficiaries their shares in accordance with the will, because the bank accounts for the estate have already been closed. Withholding tax has been deducted from the total refund and paid directly by the bank that is paying out. The executor can't claim all of the tax back as it isn't due to him, so can the beneficiaries claim their shares of the tax back individually from HMRC and what information would they need to provide to do that?
Thanks
0
Comments
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I don't think the tax deducted by the PPI is refundable as it is the correct amount (20%) for income paid post death.
Have you read something to the contrary?0 -
I believe that to be the case, estates do not have a personal allowance so all interest is taxed at 20%Dazed_and_C0nfused said:I don't think the tax deducted by the PPI is refundable as it is the correct amount (20%) for income paid post death.
Have you read something to the contrary?
https://www.litrg.org.uk/tax-guides/bereavement/how-estate-taxed-during-administration
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