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Tax back on Barclays Partner Finance car finance compensation

Lender guide · Bank Barclays Partner Finance · part of Barclays
Quick answer

If Barclays Partner Finance 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 Barclays Partner Finance 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 groupBarclays
Lender typeBank
Motor finance provision£325m
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Barclays Partner Finance

Barclays Partner Finance is a trading name of Clydesdale Financial Services Limited, the company Barclays used for motor finance from 2003 until it stopped this lending in 2019. Older agreements may carry a Barclaycard name instead, such as Barclaycard Motor Loans. As with most car finance, the deal was usually arranged by the dealer when the car was bought.

In December 2024 the High Court dismissed the company’s challenge to an ombudsman decision that the commission on a customer’s car finance should have been disclosed.

What Barclays Partner Finance 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. Barclays Partner Finance 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.

Barclays Partner Finance questions

Will claiming affect my Barclays Partner Finance compensation?

No. The rebate is a separate claim to HMRC. Barclays Partner Finance isn’t involved and your compensation doesn’t change.

I had more than one Barclays Partner Finance agreement

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

Barclays Partner Finance 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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