If you've received a Payment Protection Insurance (PPI) payout in the UK, you may be entitled to reclaim tax deducted from the statutory interest portion of that payout. This interest is considered savings income and is taxable. However, due to the Personal Savings Allowance (PSA) introduced in April 2016, many individuals may have overpaid tax on this interest.
You received a PPI payout after April 6, 2019.
Tax was deducted from the statutory interest portion of your PPI compensation.
Your total income for the tax year was within the Personal Savings Allowance limits (£1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers).
You did not already reclaim this tax via a Self Assessment tax return.
Claims can be made for up to four years after the end of the tax year in which you received the PPI payout. For example, if you received a payout in the 2019/20 tax year, the deadline to claim was April 5, 2024. As of today, May 28, 2025, you can claim for payouts received in the 2020/21 tax year or later.
