Car Finance Tax Rebate
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Eligibility

Am I Eligible for a Car Finance Tax Rebate?

Check whether your PCP or HP compensation payout qualifies for an HMRC tax rebate. Covers the Personal Savings Allowance, tax bands, and how far back you can claim.

HMRC Forms

What Is an R40 Form?

The R40 is HMRC's repayment form for reclaiming tax deducted from savings income — including statutory interest on car finance compensation. Learn who needs one and how long it takes.

HP Agreements

Hire Purchase (HP) Tax Rebate

HP car finance qualifies for the same HMRC tax rebate as PCP. If statutory interest was deducted from your Hire Purchase settlement, you can reclaim it via an R40.

40% Taxpayers

Higher Rate Taxpayer Car Finance Tax Rebate

Your Personal Savings Allowance is only £500 as a 40% taxpayer. We explain when you can still reclaim the 20% deducted from your payout — and when additional tax may be owed.

The Scandal

What Is a Discretionary Commission Arrangement (DCA)?

A DCA let car dealers secretly raise your interest rate to earn more commission. Banned by the FCA in 2021, this triggered the motor finance redress scheme — and the tax liability on your payout.

PCP vs HP

PCP vs HP: What's the Difference for Your Tax Rebate?

Understand the key differences between Personal Contract Purchase and Hire Purchase finance — and why it makes no difference to your tax rebate eligibility.

Multiple Claims

Can I Make Multiple PCP or HP Claims?

Had more than one car finance agreement? Each qualifying deal is a separate compensation entitlement — and each generates its own tax rebate. Find out how to claim on all of them.

Non-Taxpayers

Car Finance Tax Rebate for Non-Taxpayers

Even if you don't pay income tax, 20% may have been deducted from your compensation. Non-taxpayers are often owed the full deduction back — here's how to claim it.