Answers · UK 2025/26
What HMRC form do I use to claim a tax refund on savings?
Use form R40 to claim a tax refund on UK savings and investment income (interest, PPI compensation). Form R85 is no longer used since April 2016, when banks stopped deducting tax at source on savings interest. R40 covers up to 4 previous tax years.
Full answer
Since 6 April 2016, UK banks and building societies pay savings interest gross (no tax deducted at source). Form R85 (used to register for gross interest) is no longer needed. For refunds on overpaid tax on savings or investments — for example if interest was taxed in earlier years, or you reclaim tax on PPI mis-selling compensation — use form R40. Submit per tax year, up to 4 years back. Common R40 uses: PPI refund interest (8% statutory interest taxed at source before payment to you), tax-deducted bond interest paid before April 2016, life-insurance "chargeable event" gains for non-taxpayers. R40 is filed by post or online at gov.uk. Average HMRC processing time is 6–8 weeks. Always keep certificates of tax deducted (e.g. from PPI claim companies). Most savers today have no tax to reclaim because of the £1,000/£500 Personal Savings Allowance.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.