Calculate my rebate
Calculate my rebate

Tax back on Bank of Ireland UK car finance compensation

Lender guide · Bank Bank of Ireland UK · part of Bank of Ireland Group
Quick answer

If Bank of Ireland UK paid you compensation with interest, it will normally have taken 20% income tax off the interest. Basic-rate and non-taxpayers can usually get that tax back from HMRC, and we handle the claim for you.

By , Finance Editor Last checked 3 October 2026 · Sources listed below

Estimate your Bank of Ireland rebate

Estimated repayment —
Get my full estimate Estimate before fees. Paid in more than one tax year? The full estimate lets you add each payment.
Parent groupBank of Ireland Group
Lender typeBank
Motor finance provision£374m
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Bank of Ireland UK

Bank of Ireland is an Irish banking group whose UK car finance business trades as Northridge Finance, so that is the name most customers will see on their paperwork. Northridge holds around 2% of the UK motor finance market. Its agreements, usually hire purchase or PCP, were typically arranged by the dealer at the point of sale.

The group has set aside £374m for UK motor finance compensation and said in May 2026 that it did not expect that figure to change materially under the FCA’s final rules.

What Bank of Ireland took off your payout

Compensation is usually made up of three parts. Only one of them is what we reclaim.

1 · RedressThe commission or interest you overpaid. This part isn’t taxed.
2 · InterestAdded for the time you were without the money. This is taxed.
3 · Tax deductedUsually 20% of the interest. This is what we get back for you.

Can I claim?

  1. Bank of Ireland UK paid you compensation, under the FCA scheme, after a complaint or through the Financial Ombudsman.
  2. The compensation included interest, with tax deducted.
  3. You were a basic-rate or non-taxpayer in the tax year you were paid.

Bank of Ireland questions

Will claiming affect my Bank of Ireland UK compensation?

No. The rebate is a separate claim to HMRC. Bank of Ireland UK isn’t involved and your compensation doesn’t change.

I had more than one Bank of Ireland agreement

Every payout you received in the same tax year goes into one claim, including payouts from other lenders.

Bank of Ireland hasn’t paid me yet

Reserve your rebate now. We’ll tell you when payments start and file for the right tax year once you’re paid.

My letter doesn’t show any tax deducted

If no tax was deducted, there’s nothing to reclaim. If you’re not sure, our case team can check it for you at no cost.

What do you do for me?

We check what you’re owed, work out the right tax year, prepare and submit the claim to HMRC as your agent, deal with any questions and send you the balance after our fees.

Sources

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