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Hi hope someone can help

My elderly neighbour just lost her husband of 70 years

and i been helping her out with some paper work and he had life insurance with a company (dont know if i should shame them) he has been paying £9 since 1978 she contacted them about his death and was told she would recieve a chq for £1300 ok not a large amount.

When she recieved the CHQ it was for £1019 she contacted them to ask why it was less the told her we would send out a statment,

I called to day and she told me she has had the statement and there was a VAT deduction from the amount surley you dont pay VAT on it

any help

many thanks DK

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Nope you don't pay VAT on it.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Need to make a complaint to the company first. If you're not happy with their answer you can then go to the FOS.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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No there shouldn't usually be any taxes on a life insurance payout, other than inheritance tax (but of course that would only apply if the total value of the estate is above the threshold, and even then, I don't think the insurance company should deduct it at source).

 

There is an article about life insurance payout taxation here:

Tax on Life Insurance - Life Insurance Guide - Moneynet.co.uk

 

Which company is this? It sounds really dodgy if you ask me.

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No there shouldn't usually be any taxes on a life insurance payout, other than inheritance tax (but of course that would only apply if the total value of the estate is above the threshold, and even then, I don't think the insurance company should deduct it at source).

 

No it wouldn't be deducted at source. It would be deducted from the overall estate.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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