Changes to income tax rules on interest - LITRG response
This HMRC consultation appears to assume that ‘interest’ elements of all compensation awards for mis-sold financial products should be taxable. We feel that this is to misrepresent the existing body of case law and that, in fact, there are strong arguments for exempting these payments from tax.
We recommend that HMRC review their current guidance on the tax treatment of mis-sold Payment Protection Insurance, as we believe this seeks to tax those payments via published guidance rather than a firm basis in either statute or case law.
To see the consultation and the full LITRG response please use the links below:
Contact: Kelly Sizer (please use form at http://www.litrg.org.uk/ContactUs)