The taxman is set to pocket millions of pounds in compensation from PPI mis-sold to bankrupts, the Mail can reveal.
HMRC is likely to be a major beneficiary from a deluge of payment protection insurance complaints submitted to banks by the Official Receiver, the department tasked with recovering money to pay off a bankrupt's debts.
If a mis-selling victim later goes bankrupt, the receiver can claim any compensation due to them and distribute this to creditors.
HMRC is likely to be a major beneficiary from a deluge of PPI complaints submitted to banks by the Official Receiver, a department tasked with recovering money to pay off a bankrupt's debts
Banks were hit with tens of thousands of complaints from the Receiver ahead of a deadline last month, most of which are expected to lead to a payout.
This is thought to include large numbers of bankrupts who have unpaid taxes, meaning a significant proportion of the cash will end up with the Exchequer.
Caroline Sumner, of insolvency industry group R3, said: 'HMRC will be a creditor in a high proportion of cases.'
Along with a flood of demands from the general public ahead of the August 29 compensation cut-off date, complaints from the Receiver have pushed banks, including Lloyds, to set aside billions of pounds extra to repay PPI customers.
One industry source said: 'We've had a notable, reasonably large number of complaints from the Official Receiver.
'They're able to put in information requests and complaints on behalf of creditors, and all the banks have been sent large numbers.'
Last week, Royal Bank of Scotland and Clydesdale and Yorkshire Banking Group said PPI could cost them an extra £900million and £450million respectively.
Then on Monday, Lloyds said it would have to pay up to £1.8billion more and Barclays warned of an additional hit as high as £1.6billion.
All four said that paying off the Receiver would account for a chunk of this money. It means the industry is on course to have spent more than £50billion on dealing with the fallout from the scandal.
None of the banks involved would say exactly how many complaints they had been sent by the Receiver.
But figures from the Insolvency Service show there were 507,682 bankruptcies between 2000 and 2010, years when the mis-selling disaster was at its height, suggesting the total claims by the Official Receiver could be in the thousands. The average payout is around £2,000.
A spokesman for the Official Receiver said: 'We have submitted claims on behalf of bankruptcy estates we are managing to ensure creditors in those estates receive any compensation available. We do not have information as to the number of claims submitted or the likely value.'
The extra PPI costs have forced Lloyds to delay a share buyback programme intended to boost its stock price.
It is a major embarrassment for chief executive Antonio Horta-Osorio, who set aside an initial £3.2billion to pay compensation in 2011 and said he believed this would draw a line under the issue. Instead, the fiasco looks set to cost Lloyds around £21.9billion.
In bankruptcy cases, HMRC is treated the same way as any other creditor.
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