Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • TATJAM
    • By TATJAM 15th Jun 19, 2:26 PM
    • 3Posts
    • 1Thanks
    TATJAM
    Tax on PPI Interest after probate
    • #1
    • 15th Jun 19, 2:26 PM
    Tax on PPI Interest after probate 15th Jun 19 at 2:26 PM
    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?
Page 1
    • Nasqueron
    • By Nasqueron 15th Jun 19, 2:30 PM
    • 7,603 Posts
    • 4,835 Thanks
    Nasqueron
    • #2
    • 15th Jun 19, 2:30 PM
    • #2
    • 15th Jun 19, 2:30 PM
    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
    the concept of a United States of Europe is right. Winston Churchill 1930
    I think that the Government are right to apply to join the European Economic Community... -Winston Churchill 1961
    The future of Europe if Britain were to be excluded is black indeed.
    - Winston Churchill 1963
    • Dazed and confused
    • By Dazed and confused 15th Jun 19, 2:37 PM
    • 5,077 Posts
    • 2,653 Thanks
    Dazed and confused
    • #3
    • 15th Jun 19, 2:37 PM
    • #3
    • 15th Jun 19, 2:37 PM
    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
    • By TATJAM 16th Jun 19, 1:33 PM
    • 3 Posts
    • 1 Thanks
    TATJAM
    • #4
    • 16th Jun 19, 1:33 PM
    • #4
    • 16th Jun 19, 1:33 PM
    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???)
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

544Posts Today

6,364Users online

Martin's Twitter