Commentary

B2.215B Interest rate hedging products redress payments

Business tax
Business tax | Commentary

B2.215B Interest rate hedging products redress payments

Business tax | Commentary

B2.215B Interest rate hedging products redress payments

Interest rate hedging products enable the customer to manage fluctuations in interest rates. These products are typically acquired separately to a loan, and in some cases have been mis-sold. HMRC has issued guidance on how those entitled to redress payments in relation to interest rate hedging products should account for them in their tax returns1. The redress payments can be made up of three elements:

  1.  

    •     basic redress, which represents the difference between the actual payments made by the taxpayer on the mis-sold product and the payments that would have been made had

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