Calculate my rebate
Calculate my rebate

Tax back on Close Brothers car finance compensation

Lender guide · Bank Close Brothers Motor Finance · part of Close Brothers Group
Quick answer

If Close Brothers Motor 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 Close Brothers 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 groupClose Brothers Group
Lender typeBank
Motor finance provision£320m
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Close Brothers Motor Finance

Close Brothers Motor Finance is the car finance arm of Close Brothers, a FTSE 250 banking group. Its agreements are made by Close Brothers Limited under the name Close Motor Finance, and the same company also lends in other areas, such as marine and bridging finance. Most customers came to it through a dealer, who arranged hire purchase or PCP at the point of sale.

Close Brothers was one of two lenders in the Supreme Court’s car finance commission cases, and in August 2025 the court allowed its appeal in Hopcraft v Close Brothers.

What Close Brothers 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. Close Brothers Motor 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.

Close Brothers questions

Will claiming affect my Close Brothers Motor Finance compensation?

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

I had more than one Close Brothers agreement

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

Close Brothers 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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