PPI insurance claim

PPI insurance claim

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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.

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By mrme89
12th Nov 2014 18:15

No, but any interest element is.

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Replying to lionofludesch:
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By Portia Nina Levin
13th Nov 2014 11:07

Hold on

mrme89 wrote:
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.

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