One of our client who is a company received over £200K PPI compensation claim which was credited into the company bank account. Is the whole amount liable to corporation tax? Many thanks.
Replies (2)
Please login or register to join the discussion.
Hold on
No, but any interest element is.
That is correct for an individual, receiving PPI compensation in a personal capacity.
Presumably though when the company erroneously paid the original PPI premiums it claimed a CT deduction against its business profits. I would say that made the compensation a taxable receipt of the company's business.