Interest payment on CPO purchase (tax liability)

[spss]

The council took some land off me pursuant to a CPO. Elapsed times are approximately as follows:

date of the CPO (late 2004)
date of entry onto the land (early 2005)
date of contract (early 2006)

They paid me interest on the agreed settlement price from the date of entry onto the land to the date of contract (ie: interest for approximately one year). They deducted 20% at source from the interest due.

I consider this deduction to be DIRT and as such it would be my liability in full. Is this the correct treatment of this for the purpose of my tax return due end of this month?

 

[ubiquitous]

The council took some land off me pursuant to a CPO.

They paid me interest on the agreed settlement price from the date of entry onto the land to the date of contract (ie: interest for approximately one year).

They deducted 20% at source from the interest due.

I consider this deduction to be DIRT and as such it would be my liability in full. Is this the correct treatment?

Have you sought professional advice on this and the transaction in general?

My hunch is that the deduction is not DIRT since the council are not a deposit-taking institution. However you will need to clarify this by reference to documentation from them.

 

[Stronge]

I think what the Council have deducted is called With Holding Tax, AFAIK you can claim it back on your own Tax Return.