; Request for a Tax Rebate Causes Row at Over-55s Specialist

Summary

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Read Tony Hetherington's case files at thisismoney.co.uk/ hetherington D.W.S.writes: In 2009 I opened a Saga two-year savings account with Pounds 29,000, earning interest at 4.17 per cent. The interest was paid monthly, less tax. Last September I needed to realise these funds, so I closed the account prematurely in the full knowledge that I would forfeit 90 days' interest. I then wrote to Revenue & Customs seeking reimbursement of the 20 per cent tax that had already been paid on the interest that I forfeited, but the tax office says no refund is due.

IT proved almost impossible to get the Revenue to understand the problem. Officials kept telling you and me that as you paid tax at 20 per cent, your tax bill was correct. Nobody seemed able to see that you were being charged tax on interest that had been snatched back by Saga when you closed the account.

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Extract

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; Request for a Tax Rebate Causes Row at Over-55s Specialist

Interest is the reward you get for letting Saga use your money. If that interest is reduced, surely the tax should also be...

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