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Tax guides

  1. 01Is car finance compensation taxable?
  2. 02The Personal Savings Allowance
  3. 03Which tax year it counts in
  4. 04Reading your compensation letter
  5. 05What is an R40 form?
  6. 06Non-taxpayers
  7. 07Pensioners
  8. 08Starting rate for savings
  9. 09Higher-rate taxpayers
  10. 10More than one payout
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Tax Repayments · a trading name of Rebate Gateway Limited

Tax back on First Response Finance car finance compensation

Lender guide · Specialist First Response Finance · part of ITOCHU Europe plc
Quick answer

If First Response Finance paid you compensation with interest, it will normally have taken income tax off the interest (22% on payments from April 2027). 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 First Response 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 groupITOCHU Europe plc
Lender typeSpecialist
Motor finance provisionNot published
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About First Response Finance

Based in Nottingham, First Response Finance is a car finance lender owned by ITOCHU Europe plc. It lends on used cars, including through hire purchase, where you pay a deposit and monthly instalments and own the car after the final payment. The finance is usually arranged by the dealer, so First Response’s name appears on the agreement rather than the dealer’s.

Customers who took out First Response finance between 2007 and 2024 may be covered by the FCA’s compensation scheme for car finance commission.

What First Response 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 22% of the interest on payments from April 2027. This is what we get back for you.

Can I claim?

  1. First Response 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.

First Response questions

Will claiming affect my First Response Finance compensation?

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

I had more than one First Response agreement

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

First Response 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

We only cite regulators, government and independent journalism. Spotted something out of date? Tell us.

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