Tax refund

  • mrken30
  • 10/10/08 31/05/09
  • unspecified
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Posted: Mon, 09/02/2009 - 21:15

As the financial year comes to an end, are we able to get a tax refund on the tax that was paid on the interest. I was a UK resident and tax was deducted from the interest. Now that I have not received that interest in this tax year does it mean I can ask for a rebate?

Has anyone asked this question before? Also this small refund may help some people

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bad debt relief

  • Anonymous
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  • Tue, 10/02/2009 - 04:30

I am far from being an expert on taxes, but I think you could claim bad debt relief in respect of income tax on any interest accrued in a KSF account since the date you last withdrew funds from the account or else in respect of any interest credited to the account after Oct 8 2008 (irrespective of it having been accrued prior to that date). You should check that with a tax inspector (in the case of UK Revenue and Customs). However, if you have claimed under EPS, you may find that Rev and Customs treat that payout as being payment of (part of) the interest accrued and that the interest on which can claim relief is reduced by that amount.


not sure

  • justr
  • 12/10/08 31/05/09
  • unspecified
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  • Mon, 09/02/2009 - 21:51

not sure, but think about this. Our accounts have been 'updated' and interest added up until 9th October. For those who are/were paid gross, we will now be asked to pay tax on the amount credited on 9th although we have never recieved it and indeed nothing was due to be paid on 9th anyway. WHAT A FARCE


That's ridiculous. They can't

  • investor6
  • 08/02/09 31/05/09
  • not a depositor
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  • Mon, 09/02/2009 - 23:31

That's ridiculous.
They can't force you to pay tax on money that was stolen from you.


it would appear otherwise

  • justr
  • 12/10/08 31/05/09
  • unspecified
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  • Tue, 10/02/2009 - 01:33

It would appear otherwise. Our accounts have been credited. The fact that we have 'lost' our money is a seperate issue.

This opens another can of worms.

A person that had everything deposited with KSF,  may now be chased for many thousands of pounds for tax on interest that they never had. I am not sure that the taxman will offset this against capital losses through ????*. Are we then to be made bankrupt I wonder.   If we thought that we had  'seen it all, '  then think again.  Unless this sorry mess is sorted very soon then I hate to imagine what action desperate people may take if faced with this possibilty. 


capital gains tax

  • mr lynton
  • 27/10/08 31/05/09
  • a depositor
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  • Tue, 10/02/2009 - 11:33

Indeed some people have deposited the proceeds of the sales of small businesses into KSF bonds. They now face the prospect of large capital gains tax bills with no funds to pay them - will they have to sell/ re-mortgage their homes to pay CGT on capital they no longer have? Quite ridiculous


Tax situation

  • nr8209
  • 12/10/08 31/05/09
  • a depositor
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  • Tue, 10/02/2009 - 11:49

I'm not sure of the UK situation, however in the USA a loss can be claimed/offset if there is evidence provided that failure has occured. Therefore I would need official notification of the liquidation to do this. The fact that it is a foreign bank may yet muddy the waters. The losses can be claimed back over several years at up to $30,000 per year. Obviously any repayments would have to be added back in as income.


official notification of liquidation

  • mrken30
  • 10/10/08 31/05/09
  • unspecified
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  • Tue, 10/02/2009 - 16:44

How do you suppose that we can get a noticifation of liquidation when nobody will make the decision. I am in the US and would like to know how to claim these losses.


official notification of liquidation

  • Anonymous
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  • Tue, 10/02/2009 - 17:45

They are not losses, they are presently bad debts. I have suggested above that as the interest (or part of it) is a bad debt, relief can be claimed on that interest in UK tax law. I suspect the same would be true of US tax law (although that is a wild guess on my part since almost nothing about US law has ever made sense to me, save to the extent that US common law is essentially the same as English common law).

If, on the other hand, you are seeking to claim a loss to set off against a profit elsewhere, then that would appear to relate to the deposit itself rather than the tax on the interest accrued on the deposit, and that is a quite different matter.