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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6849
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

Would like to ask a question regarding potentially receiving

This answer was rated:

Would like to ask a question regarding potentially receiving a refund from a mis sold pension and if its taxable?
JA: Which tax year is the refund for?
Customer: No refund has been finalised or received yet, so if a refund received soon it could be this tax year maybe
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello and welcome to JustAnswer. I am here to help you. Please expand on your question and advise if refund would include interest etc.

I will respond to you shortly.
Many thanks

Customer: replied 6 months ago.
I am not really sure but maybe. There is company dealing with the mis sell. As far as I am aware they are claiming through the FSCS and I would have to pay them a fee for there services. Just trying to pre empt what would be due if I receive a refund

Thank you for your reply.

Normally compensation for mis-sold pension would be not be subject to tax. Any interest paid to you within the compensation total would be taxable and tax at basic rate of 20% would be deducted at source.

More information on this can be found on HMRC internal manual SAIM2340 here

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question. and other Tax Specialists are ready to help you
Customer: replied 6 months ago.
Many thanks for the information and quick response.

I thank you for accepting my answer.

Best wishes.