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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I have had a PPI claim, and tax has been deducted from the

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I have had a PPI claim, and tax has been deducted from the interest on the loan. Claims Advisory Group Ltd who dealt with the claim, think I may be able to claim back this tax as I am a pensioner,and only pay tax on my company pension with Winterthur Life UH Ltd, My tax code is 87Y,
Your advice would be appreciated
Alan Davies,
***** Prestwich Manchester M25 1 EG Nat Ins No.ZP873028D
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloYes you may be able to receive a refund on the PPI claim.If a complaint about the mis-selling of PPI is upheld or the firm that sold the PPI has agreed to compensate the customer, the customer will usually be put in the position they would have been in had they not take out the PPI. This is sometimes called general redress. General redress may include:a refund of PPI premiumshistoric interest (interest paid by the customer on the PPI premium if it was added to the loan or credit card)simple interest at a rate of 8% per annum which is to compensate the customer for being deprived of the money they had paid to the firm for the PPI.The 8% interest paid by the firm will be taxable to you but not your initial return of premium.
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