Tax on PPI Interest after probate

TATJAM · 15 June 2019 at 3:26PM

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?

Nasqueron · 15 June 2019 at 3:30PM

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.

Condolences for your loss

Dazed_and_confused · 15 June 2019 at 3:37PM

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

TATJAM · 16 June 2019 at 2:33PM

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???)

Tax on PPI Interest after probate

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