How do I reclaim tax on savings interest using an R40?
If tax has been deducted from your savings or investment income but your allowances mean you should not have paid it, you can reclaim the tax from HMRC. The R40 form is often used to do this when you do not complete a Self Assessment return. It is free to claim.
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Check what you're owed →In some situations tax is taken from savings or investment income at source, or you end up having paid tax you did not actually owe once your Personal Savings Allowance and other allowances are taken into account. If you do not complete a Self Assessment return, the R40 form is the usual route to reclaim that tax directly from HMRC.
This commonly affects people whose income is low enough that their savings interest should be covered by their allowances, or who have had tax deducted from certain payments. Because the Personal Savings Allowance lets most people receive a chunk of interest tax-free, and lower earners may have additional tax-free room, tax deducted on that interest can often be reclaimed in full.
To make the claim you need details of your income and the tax deducted for the year in question, so keeping your interest statements and any vouchers showing tax taken is important. You can usually claim for more than one year at a time within HMRC’s time limits, and you should never have to pay a third party a share of a refund you can claim yourself.
How to reclaim savings interest tax with an R40
- Check the tax was not due. Work out whether your allowances mean the tax deducted from your savings interest should not have been paid.
- Gather your figures. Collect statements showing your interest and the tax deducted for each year you want to claim.
- Complete the R40. Fill in the R40 form with your income and tax details, or use the equivalent online route, for each year.
- Submit to HMRC. Send the claim to HMRC and wait for the refund, keeping your records in case of any query.
Key figures (official sources)
- £1,000Personal Savings Allowance — basic-rate taxpayersSource: GOV.UK — Tax on savings interest (checked 2026-06-28)
- £500Personal Savings Allowance — higher-rate taxpayersSource: GOV.UK — Tax on savings interest (checked 2026-06-28)
Frequently asked questions
- When would I use an R40?
- To reclaim tax deducted from savings or investment income when you do not complete a Self Assessment return and your allowances mean it was not due.
- Who often benefits from this?
- Lower earners whose savings interest should be covered by their allowances, or people who had tax deducted from certain payments.
- What information do I need?
- Details of your income and the tax deducted for the relevant year, supported by interest statements or tax vouchers.
- Can I claim for more than one year?
- Usually yes, within HMRC’s time limits. You can reclaim for several past years if tax was wrongly deducted.
MoneyFinder is an independent sign-posting service that helps you find financial support you may be entitled to. We are not a government body and do not provide financial advice. Figures are taken from the official sources cited above and were correct when last checked — always confirm current details on the linked GOV.UK pages.