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If living outside of the UK, is there tax on a PPI refund?

TOTALNEWBIE
TOTALNEWBIE Posts: 67 Forumite
edited 11 June 2017 at 6:49AM in Reclaim PPI & other insurance
No loner needed

Comments

  • dunstonh
    dunstonh Posts: 120,240 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Depends on the taxation in the country of residence and the taxation agreements between the UK and that country.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • TOTALNEWBIE
    TOTALNEWBIE Posts: 67 Forumite
    Thank you.
  • Insider101
    Insider101 Posts: 1,062 Forumite
    TOTALNEWBIE wrote: »
    As the title suggests, if a person lives outside the UK, should they pay tax on their PPI refund?

    They are required to deduct 20% at source. However, you may be able to claim it back depending, as Dunstonh says, on the tax position in your country of residence and the arrangements between that country and the UK.
  • TOTALNEWBIE
    TOTALNEWBIE Posts: 67 Forumite
    Thanks very much, they have said they will come back to me on Monday.
  • Bendex
    Bendex Posts: 15 Forumite
    Curious as to the outcome of this, and who you contacted, as I live in USA and have just had interest deducted from a PPI refund....?
  • Insider101
    Insider101 Posts: 1,062 Forumite
    Bendex wrote: »
    Curious as to the outcome of this, and who you contacted, as I live in USA and have just had interest deducted from a PPI refund....?

    You need to speak to HMRC and ask for it to be refunded as you are non resident for tax purposes.
  • dunstonh
    dunstonh Posts: 120,240 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Bendex wrote: »
    Curious as to the outcome of this, and who you contacted, as I live in USA and have just had interest deducted from a PPI refund....?

    There is no outcome to this. You pay tax on it and handle it via the tax arrangements of your country. In this case, the US.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
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