SolvedSAIM2110 | Interest: interest and PPI
From HM Revenue & Customs · Savings and Investment Manual
Compensation for missold PPI is calculated in a number of ways. It can include an interest element. The links below are to examples based on the most common scenarios. The examples describe how the compensation is calculated and which elements of the compensation are taxable. The examples do not cover every situation. If a customer has received PPI compensation that does not fall into one of these examples it may nevertheless still be possible to identify the 8% interest element in the compensation calculation. If this is not possible then contact the BAI Financial Products Team.