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Tax on PPI Interest after probate

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Tax on PPI Interest after probate

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
3 replies 588 views
TATJAMTATJAM Forumite
3 posts
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
I reclaimed PPI paid by my late mother.. I received a refund well after the end of the period of administration i.e after the estate has been shared with the beneficiaries ( there was no inheritance tax to pay) . The interest element of the payout has been taxed at 20%. is this correct?

Replies

  • NasqueronNasqueron Forumite
    7.7K posts
    ✭✭✭✭
    PPI interest is always taxed yes. You can apply to HMRC for a refund though it's probably going to be a bit more complicated given the fact she's dead and thus doesn't technically have the personal savings allowance so try and cover it all when you send the form (R40) in.


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  • Dazed_and_confusedDazed_and_confused Forumite
    6.5K posts
    Uniform Washer
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    Yes, it's correct.

    I don't see that an R40 applies here as this is income post death.

    The guide linked to below is helpful.

    https://www.litrg.org.uk/tax-guides/bereavement/how-estate-taxed-during-administration
  • TATJAMTATJAM Forumite
    3 posts
    Thank you for your replies and kind thoughts. The link is helpful, but my understanding is that this is income which has arisen after the period of administration,as the assets have already been distributed ( unless the PPI receipt reopens the period of administration???)
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