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Tax back on Honda Finance Europe car finance compensation

Lender guide · Car brand Honda Finance Europe · part of Honda Motor Europe
Quick answer

If Honda Finance Europe 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

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Parent groupHonda Motor Europe
Car brandsHonda
Motor finance provisionNot published
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Honda Finance Europe

Honda car finance in the UK is provided by Honda Finance Europe plc, which is owned by Honda Motor Europe, the carmaker’s European business, and shares its base in Bracknell. Most customers come to it through a Honda dealer, who arranges the finance, such as hire purchase, when the car is bought. Your agreement or annual statements should show the lender’s name.

Hondas financed between 2007 and 2024 may fall within the FCA’s compensation scheme for car finance commission.

What Honda 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. Honda Finance Europe 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.

Honda Finance questions

Will claiming affect my Honda Finance Europe compensation?

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

I had more than one Honda Finance agreement

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

Honda 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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