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Reclaiming Tax On Late Wife's PPI Interest

NameWithheld
Posts: 147 Forumite

Earlier this tax year I received a PPI payout for nearly £11k. Part of that was paid to my late wife's estate, of which I was the sole beneficiary. The payout included over £2100 gross interest to my wife's estate, and £425 tax was deducted from this part. Can I claim any of this tax back, and if so how.?
I should add that my own part of the gross interest was over £4800, greatly exceeding the £1000 annual interest tax allowance. I'm planning to claim part of the tax on that part back early in the next tax year when I know my total interest for the year.
I should add that my own part of the gross interest was over £4800, greatly exceeding the £1000 annual interest tax allowance. I'm planning to claim part of the tax on that part back early in the next tax year when I know my total interest for the year.
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Comments
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Unfortunately your late wife's estate is not entitled to a personal allowance, all income is taxable (unless the income is specifically exempt from income tax, for example winnings from premium bonds. Note also that the personal savings allowance and dividend allowance are not available to the personal representative after the date of death.
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Ok, thanks. Just thought it was worth asking about. I will just claim for the tax on my bit0
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Just to check, if your late wife's passing was in the current tax year then her personal allowance would still be available, I assumed, perhaps wrongly in my original answer that she passed away in a previous tax year0
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No she passed away in 20120
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NameWithheld said:Earlier this tax year I received a PPI payout for nearly £11k. Part of that was paid to my late wife's estate, of which I was the sole beneficiary. The payout included over £2100 gross interest to my wife's estate, and £425 tax was deducted from this part. Can I claim any of this tax back, and if so how.?
I should add that my own part of the gross interest was over £4800, greatly exceeding the £1000 annual interest tax allowance. I'm planning to claim part of the tax on that part back early in the next tax year when I know my total interest for the year.
Tax on savings interest - GOV.UK (www.gov.uk)
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Thanks but my other income exceeds the 17500 stated in the link. In fact I am having to pump extra income into a pension to stop the PPI interest pushing me into the 40% band1
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