Tax on interest not received because of early closure penalty

eskbanker

talexuser said:

Read again, for the thread starter question in my first post I stated that if the penalty was taken from interest you are ok, if from capital you are not. In my case the penalty was from capital, upheld by T&Cs, end of story for the present legal position. My opinion is that this is unfair.

It's perfectly reasonable to have that opinion - I disagree with it but everyone's entitled to their opinions!

But, having accepted that the penalty is deducted from capital (however unfair you might feel this is), you must surely understand that your repeated claim that you're taxed on interest income that you didn't receive is factually incorrect, rather than being a valid opinion?

talexuser

No, that's the whole point of opinions. If all opinions always agreed with the status quo there would be no advancement of the human condition. A building society has the expectation of interest, not capital depreciation, for that you go to the stock market. Interest can be variable, you choose institutions on it, and if penalties are based on interest calculations then you expect an interest reduction. The legalities of non-obvious T&Cs are the stumbling block of the present debate. However from the customers point of view the interest is the difference of what you get out compared to what you put in.

eskbanker

You're obviously using a different dictionary from the rest of us!

It's a valid opinion to consider the current system unfair.

It's a valid opinion to believe that it wasn't made as clear as you'd have liked on your account.

It's a valid opinion to feel that something should be done about it.

At a stretch, it might even be a valid opinion to assert that "from the customers point of view the interest is the difference of what you get out compared to what you put in", although evidently that conclusion itself is at odds with the facts.

But it's factually inaccurate to claim that you were taxed on interest income that you didn't receive....

masonic

Strictly you can have an opinion on anything. For example, you could be of the opinion that a £1 coin is worth ten pounds. However, that opinion may not survive an encounter with reality. If you continue to hold it thereafter, then that's when it becomes harmful. Perhaps before then if the opinion causes you to load up on pound coins for a fiver each, thinking you are getting them at a 50% discount.

eskbanker

masonic said:

Strictly you can have an opinion on anything. For example, you could be of the opinion that a £1 coin is worth ten pounds. However, that opinion may not survive an encounter with reality.

It wouldn't survive an encounter with this forum either, or any other that I frequent!

Perhaps there's an appetite for that sort of thinking on QAnon/FOTL sites and the like though....

talexuser

masonic said:

Strictly you can have an opinion on anything. 

Thank you.