Am I Eligible for a
Car Finance
Tax Rebate?
If you received PCP or HP car finance compensation, HMRC almost certainly deducted 20% tax from your statutory interest. Most people qualify to reclaim it — check in 60 seconds.
Check My Eligibility Now
Who Is Eligible for a Car Finance Tax Rebate?
The car finance tax rebate applies to anyone who received — or will receive — compensation under the FCA’s motor finance redress scheme where that compensation includes a statutory interest element. Statutory interest is the time-value component added to your settlement, and HMRC automatically deducts 20% from it before the money is released by the lender.
Eligibility for a tax rebate depends primarily on your tax status in the year you received the payout. Basic-rate taxpayers are entitled to a Personal Savings Allowance of £1,000 per year — meaning the first £1,000 of savings interest is tax-free. Non-taxpayers may be entitled to recover the full 20% deducted. Higher-rate taxpayers have a reduced allowance of £500 and may owe additional tax rather than receiving a rebate.
You do not need to have completed a tax return, registered for self-assessment, or had any prior dealings with HMRC to claim. The R40 form is filed on your behalf by our HMRC-registered agents. Most claimants receive their rebate within 6–8 weeks of filing. There is no upfront cost — our fee of 39% + VAT applies only if a successful rebate is received.
The FCA’s redress scheme covers PCP and HP agreements made between 6 April 2007 and 1 November 2024. You may still be eligible even if your agreement was paid off years ago, or if you haven’t yet received your compensation payout. Register now and our agents will assess your position.
Estimate Your Tax Rebate
How Much Could You Be Owed?
Estimate only. Actual figure depends on your specific payout breakdown and tax status.
How to Claim Your Car Finance Tax Rebate
We handle everything — you don’t need to contact HMRC, your lender, or the FCA at any stage.
You Had a PCP or HP Agreement
Your car finance agreement must be a PCP or HP made between 6 April 2007 and 1 November 2024. Lease agreements (PCH) are generally not included. If you are unsure, your original finance document or settlement letter will confirm the agreement type.
Statutory Interest Was Included
Your compensation payout must include a statutory interest element. Your settlement letter will show a “statutory interest” line and a “tax deducted” figure alongside it. Both are required for an R40 claim.
Your Tax Status Supports a Rebate
Basic-rate taxpayers (income up to £50,270) have a £1,000 Personal Savings Allowance per year. Non-taxpayers may recover the full 20% withheld. Higher-rate taxpayers (income above £50,270) have a £500 allowance and may owe additional tax — we assess this before filing.
You Are Within the Time Limit
HMRC allows R40 claims for up to four tax years after the end of the year in which the payout was received. Claims are also available for payouts not yet received — we register your interest now and file in the correct year once compensation arrives.
Higher rate taxpayers may not be eligible. In some cases additional tax may be due instead — we assess this before any claim is submitted.
Frequently Asked Questions
Yes. You can register with us now and we will file your R40 claim in the correct tax year once your compensation is paid. The FCA expects most compensation payments to be issued during 2026. Registering early means no delay once your payout arrives.
Higher-rate taxpayers have a reduced Personal Savings Allowance of £500 and are taxed at 40% on savings interest above that threshold. In many cases higher-rate taxpayers will owe additional tax rather than receive a rebate. We assess your position before filing anything.
Yes, in many cases. HMRC allows R40 claims for up to four tax years after the end of the relevant tax year. Our agents will confirm your specific deadline when you register.
There is no upfront cost. Our fee is 39% + VAT of any successful rebate — if HMRC does not repay anything, you pay nothing. We confirm our fee clearly before any claim is submitted.
HMRC typically processes R40 repayment forms within 6–8 weeks of receipt. Our agents handle all communication with HMRC and will update you when a decision is made.
Yes. You can register your interest now and our agents will file your R40 tax rebate claim in the correct tax year once your compensation is paid. The FCA expects most payouts to be issued during 2026.
Check Your Eligibility in 60 Seconds
Most basic-rate and non-taxpayers qualify. Our HMRC-registered agents confirm your eligibility for free — no paperwork, no upfront cost.