Form R40 is HMRC’s claim for repaying Income Tax that was taken off savings or investment income before you received it, for people who are not in Self Assessment. You can claim for the current tax year and the previous 4 years, with a separate claim for each year, and you must send the payer’s statement of tax deducted if you are reclaiming tax on interest. Since banks stopped deducting tax in April 2016, R40 is mainly used for interest paid by companies, such as PPI compensation interest, and for trust or annuity income taxed at source.

Who should use form R40?

gov.uk says you can use the form if, for the year of the claim:

  • your gross income from savings and investments is £10,000 or less;
  • your gross rental and other property income is £10,000 or less;
  • your net property income is £2,500 or less; and
  • your foreign dividends are within that year’s dividend allowance.

You cannot use it if your income is above those limits or if you are registered for Self Assessment; you claim through your tax return instead. If you live outside the UK, there is a different form, the R43.

R40 is one of several repayment forms. HMRC’s PAYE Manual at PAYE91065 lists it as the form for an individual claiming back tax deducted from investment income, alongside the P50 series for employment and the P53, P53Z and P55 forms for pension payments; see claiming tax back after leaving a job.

Why is tax still taken off some savings income?

HMRC’s policy paper on the deduction of tax from savings income explains that the obligation on banks and building societies to deduct tax from interest was removed from 6 April 2016, when the Personal Savings Allowance was introduced. Deduction also ended from 6 April 2017 for interest distributions from authorised unit trusts, open ended investment companies and investment trust companies, and for peer to peer lending interest.

Ordinary bank interest is now paid gross, so there is no tax deducted for R40 to recover. Any overpayment on it comes from your tax code or a tax calculation, which you correct through HMRC or your personal tax account.

Tax is still deducted in some cases. Section 874 of the Income Tax Act 2007, as HMRC’s Savings and Investment Manual at SAIM9070 explains, requires tax to be deducted from yearly interest paid by a company to an individual. SAIM2125 gives the example of the 8% interest added to mis sold PPI compensation, which is taxable and paid with tax deducted. The R40 form also has boxes for tax taken off purchased life annuity interest and for trust and estate income.

When is the tax refundable?

If your allowances cover the income, the tax taken off it is refundable. For 2026 to 2027, the standard Personal Allowance is £12,570. gov.uk explains that if your other income, excluding savings and dividends, is below £17,570, you can also use the starting rate for savings of up to £5,000. On top of that, the Personal Savings Allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. How savings and dividend income stack shows how these layers interact.

Illustration only. Edna is retired with a State Pension and small private pension totalling £11,000 in 2025 to 2026. She also received PPI compensation including £1,000 of interest, from which £200 tax was deducted. Her total income of £12,000 is below the Personal Allowance, so none of the interest is taxable and she can reclaim the full £200 on an R40 for 2025 to 2026, enclosing the statement from the firm that paid her showing the gross interest, the tax deducted and the net amount.

How do you make the claim?

Since September 2024 HMRC has provided R40 through an online tool that replaced the old PDF form. You start the claim online, and gov.uk lists the income you will need details of: employment, pensions and state benefits; interest and dividends; trusts, settlements and estates; property; and foreign income. Useful documents include your P60 or P45, bank statements, letters from the Department for Work and Pensions, trust and estate income statements and dividend vouchers.

For a refund of tax on interest, you must send evidence from the payer showing the gross interest, the tax deducted and the net interest. If you do not have it, ask the payer. gov.uk says this document must be posted to Pay As You Earn, HM Revenue and Customs, BX9 1AS. For any other type of repayment, do not send evidence; HMRC will ask if it needs it.

What does the form ask for?

The R40 asks for your whole income for the year, not just the item with tax deducted, because HMRC has to work out your full liability. The paper version, R40(M), has sections for:

  • employment income, pensions and taxable state benefits, with the tax taken off each;
  • UK interest and dividends, entering only your share of joint accounts, with separate boxes for net taxed interest, tax taken off and the gross amount;
  • trust, settlement and estate income, including the trust’s reference number;
  • UK property income, expenses and losses;
  • foreign income and foreign tax paid;
  • other income, including chargeable event gains on life policies;
  • Gift Aid payments;
  • Blind Person’s Allowance and Married Couple’s Allowance, which is only due where you or your spouse or civil partner were born before 6 April 1935.

There is a box to mark an interim claim if you expect more income before the end of the tax year, and a box to say you do not need a claim form in future. The declaration states that the information is correct and complete to the best of your knowledge.

Can someone else claim for you or receive the refund?

gov.uk says a claim on someone else’s behalf must be made by post: you start the claim online and get a link to the postal form, fill it in with their details and sign your own name, stating the capacity you are signing in, such as parent, attorney or executor.

The repayment can go to a nominee. The form says a nominee who is a professional charging a fee must be registered on HMRC’s Agent Services Account, give their Agent Reference Number and use the registered business name. Other nominees give a name, address and reference. See nominating repayments to an agent, and be wary of tax refund companies that take a large share of small refunds.

What is the time limit?

Section 43(1) of the Taxes Management Act 1970 sets the general rule that a claim must be made within 4 years from the end of the tax year it relates to; HMRC’s Claims Manual at SACM3035 confirms this. A claim for 2022 to 2023, which ended on 5 April 2023, must therefore reach HMRC by 5 April 2027. gov.uk’s savings guidance gives the same 4 year limit for reclaiming tax on interest. See time limits for tax claims.

The R40 notes ask you to allow 4 weeks before contacting HMRC about a repayment. HMRC then tells you whether you are entitled and how it will pay.

What mistakes do people make?

  • Using R40 while registered for Self Assessment. The claim goes on the tax return instead.
  • Claiming for bank interest. It has been paid without deduction since 6 April 2016, so there is nothing to reclaim on R40.
  • Leaving out other income. HMRC needs the full picture to calculate the refund.
  • Forgetting the evidence. A claim for tax on interest needs the payer’s statement, sent by post.
  • Combining years. Each tax year needs its own claim.
  • Missing the oldest year. Once 4 years have passed from the end of a tax year, that year is closed.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.