On 28 August 2012, the Income Tax Division issued Practice Note No. 179/12, explaining the tax treatment of the interest component of payment protection insurance (PPI) compensation. The Practice Note clarifies that the interest element included in PPI compensation payments is taxable in the tax year in which the compensation is received. However, double taxation relief is available for the UK tax deducted from the amount of the interest paid by a UK company and received by a resident of the Isle of Man, depending on the total amount of the Manx resident's UK income.