Tax on PPI redress

[honey56]

Hi,

 

I have received my calculations for redress on PPI for 2 loans and a credit card from Lloyds.

 

It shows on there the amount deducted for tax, I am a non UK tax payer as I live in France, can I claim this back?

[maroondevo52]

honey, I've 'flagged' your question up for Site Team, hopefully you will get an answer shortly.

[citizenB]

Yes, you will have to make contact with HMRC yourself to do this though.

[citizenB]

Apparently you need to use form R40

 

https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-r40

[goodatresearch]

Form R40 may not be appropriate if you live abroad. You can still be taxed on your UK income if you live abroad and then taxed again in the country you live in i.e. double taxation. However I think France has a double taxation agreement with the UK meaning you only get taxed once.

 

Its quite complicated though. I'd ring the tax office helpline for guidance.

[slick132]

I agree, contact HMRC for an answer.

 

A UK resident can certainly reclaim tax deducted from the int't element of a PPI refund if their income is covered by tax allowances.

 

But I'm not sure if the tax can be refunded to a non-resident.

 

If you are a French tax payer, I would declare the int't element as unearned or investment income and declare the associated tax deducted.