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Hi I am one of the experts. On ppi, there are three elements of compensation, historic interest and simple interest. This simple interest element is taxable and should be declared on the self assessment.
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But may be already this interest is taxed at source so please check with the guys who are helping you get this compensation. If it is already taxed at source by bank then it should all be good.
If question is answered then please also accept answer.
Reference for tax: https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2105
So, you need to look for these two kinds of interest and figure out which one is taxed. Normally this 8% interest is taxable. This is clearly written on the reference link.
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