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Calculate my rebate

Tax back on Blackhorse car finance compensation

Lender guide · Bank Blackhorse · part of Lloyds Banking Group
Quick answer

If Blackhorse 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 Blackhorse rebate

Estimated repayment —
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Parent groupLloyds Banking Group
Lender typeBank
Motor finance provisionAbout £2bn
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Blackhorse

Part of Lloyds Banking Group, Blackhorse is the UK’s largest motor finance lender. It finances cars and, under names such as Harley-Davidson Finance and Yamaha Finance, motorbikes too. Most customers meet it through a dealer, who arranges the finance, often PCP or hire purchase, when the vehicle is bought.

Lloyds has set aside about £2bn for motor finance compensation, one of the largest provisions in the industry, and stood by that figure after the FCA published its final rules in March 2026.

What Blackhorse 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. Blackhorse 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.

Blackhorse questions

Will claiming affect my Blackhorse compensation?

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

I had more than one Blackhorse agreement

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

Blackhorse 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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