Posted: 26. October 2018 by: Rupert Tennant

Claiming Refunds on Investment Taxes

Investments and savings are one of the most common ways of earning money in the UK, and it’s usually considered a sign of a robust and vibrant middle class. Since taxes on this income are paid in gross, those who pay them claim their refunds and deduction after they’ve made the payment.

This is a complex procedure, and it’s best if it’s left to professional tax accountants. It’s usually something that that’s worth paying for since the refunds could be substantial and used in a more lucrative way.

The rules since 2016

The rules set up in 2016 have put the burden of completing tax applications to the last person who receives the money. That means that when a bank pays off your investment or savings interest, they pay all the money you have at the moment, and it’s up to you to pay the taxes on the income in bulk.

When the income made in this way is higher than £1000, you need to file a self-assessment return and to let HMRC know that you have income that needs to be taxed. There are good sides and bad sides to this approach, but it is what it is.

What form you need to fill

The form used to apply for this refund is called R40 if you live within the UK and R43 if you live abroad and are still paying taxes in the UK. This form could be filled in online on your HMRC account, or it can be filled in person and on paper.

If you don’t know how to complete this complex form, there’s professional help available for you provided by HMRC. This is only needed if you file your forms on your own, but you shouldn’t be filling such forms without an accountant present.

The data you need to provide

Claiming a tax refund will require you to provide quite a lot of data to HMRC. However, once you do it a few times, you’ll be able to complete the form every time there’s a need for it.

  • Always keep a copy of the R40 you’ve sent to HMRC.
  • If you’ve sent R40 by mail keep a copy of the proof that you’ve paid postage.
  • The paperwork that proves that you have a right to a refund should be kept for two years since you’ve got the refund.
  • A bank should provide an interest certificate proving that you’ve made money in the first place. This needs to be obtained for every savings account you have.
  • Paperwork for any other savings income you get, even if you don’t claim refunds on them.
  • Dividend vouchers if you own a portion of a company.

 Information for HMRC in particular

The only document that HMRC legally needs in the first place is the R40 form. However, it’s always a good idea to have the bank statements at your side because sometimes HMRC might ask to see them as a part of a routine checkup. Don’t send them if they are not requested; it’s not up to you to do the government’s job for them.

It’s also a good idea to provide HMRC with your National insurance number. That number is used by the government to keep track of your finances, and it may speed up the process to simply provide it alongside your name.

The time frame

There are two main time frames to think about when it comes to tax refunds. Firstly, you need to consider when you should apply for the refund and secondly when you’ll be able to get your money back. The answer to the first question is simple – you need to provide the info to HMRC by April the 5th if you want a refund for the past year.

The second question is much more complicated. There’s no clear rule as to when the government will give you your money back. The chances are that this won’t happen until September, since that’s the busy season for HMRC. Things tend to go faster when you submit the application online.

If you feel like it takes too long to get your money back, you should contact HMRC through its free phone line and ask about your refund.


The taxes on the income made from investing and savings are paid at once, and you ask for allowances and refunds later on if you have a right to them. This is done via a form called R40. The form could be filled on paper or online.

The data you need to collect in order to get this refund is provided by the banks in which you save or in the fund through which you invest. At the same time, this data may not be necessary provided by you. The form is all you need.