Car finance - Supreme Court Judgment 1st August.

Toxicwaste

Hi, I have successfully complained about a strand 1 DCA so per Martins guidance would expect to receive some level of payment in 2026. Can anyone advise if the payment will be subject to tax as a form of income ?

Nasqueron

Toxicwaste said:

Hi, I have successfully complained about a strand 1 DCA so per Martins guidance would expect to receive some level of payment in 2026. 

Not at all, the FCA have to decide if anyone gets anything and simply having DCA doesn't mean anything, it can be neutral (applied but not used) or even positive (rate reduced).

Toxicwaste said:

Can anyone advise if the payment will be subject to tax as a form of income ?

If there is a refund and if there is "compensation" in the form of interest payments as well, if it goes like PPI, the former is not taxable but the latter is - 8% simple (not compound) interest was the model used, it was often taxed so had to be claimed back from HMRC where applicable

MyRealNameToo

Toxicwaste said:

Hi, I have successfully complained about a strand 1 DCA so per Martins guidance would expect to receive some level of payment in 2026. Can anyone advise if the payment will be subject to tax as a form of income ?

Compensation, other than for loss of income in some circumstances, isnt subject to income tax however any interest paid on the compensation is. 

The redress scheme hasn't been finalised yet and there are a number of challenges to overcome yet so no one can say with absolute certainty that you'll be getting anything. Plus payments will start in 2026, there is no guarantees it will complete within 12 months.