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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6226
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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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 16 days 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

https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2340

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

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Customer: replied 15 days ago.
Many thanks for the information and quick response.

I thank you for accepting my answer.

Best wishes.