in Reclaim PPI & other insurance
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Hi I’ve had a refund from hsbc for an investment account I was sold wrongly and lost £10,000 via a third party. They took 40% of my money they got back for me and was tax on all of the amount I was given. Even the £10,000. The company have said I can make another claim for them to get this money back with the same charges. Is this really correct?
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If you believe you should not have paid tax on the interest part of the amount, you can reclaim it via HMRC. If you paid too little tax, it will tell you how much more you need to pay.
The interest amount on the redress is taxable at source but can be fully or partially reclaimed from HMRC if it is within your personal savings allowance (£1000 for most people but £500 for higher rate).
The CMC will charge you again for reclaiming it and some unscrupulous ones get themselves named as agents and will take a cut of any future HMRC rebate you may get.
You only need to notify HMRC yourself of the interest amount you have been paid in this tax year and they will rebate you directly.
Remember that it is only the interest part of the redress. Not the capital part.