Shakespeare
Registered User
- Messages
- 124
Hi all,
Apologies if in incorrect thread but if a Bank is compensating someone for Interest that should have been earned on money in an account, I understand that the payment to be made as compensation will only be the net amount that you should have received after DIRT on that interest.
However, given that the bank will not be backpaying DIRT on the gross amount and are insistent that the net "interest" being paid is compensation, not interest, is there any further liability to tax on the recipient??
Any insight/advice appreciated
S
Apologies if in incorrect thread but if a Bank is compensating someone for Interest that should have been earned on money in an account, I understand that the payment to be made as compensation will only be the net amount that you should have received after DIRT on that interest.
However, given that the bank will not be backpaying DIRT on the gross amount and are insistent that the net "interest" being paid is compensation, not interest, is there any further liability to tax on the recipient??
Any insight/advice appreciated
S
