Have Tax Questions? Ask a Tax Expert for Answers ASAP
Thanks for your prompt reply. Second part first, there is no mention in the letter about tax whatsoever and in case it's relevant, I'm self employed.
The breakdown is:
Assumed amount at fixed rate bond £83,828.15
Surrender value received £62,783.37
Total loss £21,044.78
They are offering £373.62 ex-gratia payment in lieu of interest at 8% simple interest from 12th June to 1 September
Which gives £21,418.40 and they are rounding this up to £21,450 as a gesture of goodwill.
I need to go out for an hour, I will log back in when I return. Thank you for this.
Thanks Sam, I'd forgotten about restoring it to the original amount before GCT so you've saved me there. Can you let me have an address, or should I write to the Tax Office that does my self-employment assessment? As of this year people don't pay tax on savings income up to £5000 and I would assume that the "interest" they're paying can be counted in this. This year I was just under the amount to pay tax (ie under the £10,000 personal allowance) and my interest income is only in the hundreds, so there shouldn't be any other tax implications. Am I right in these assumptions?
Thank again Sam. I'm about to rate you - you've been brilliant.