beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Capital Gains Manual

Incentive payments/financial institutions: cashbacks: contractual rights

Under these arrangements, the society has offered to pay the cashback. That offer is accepted by the borrower once they take out the mortgage. Both parties have fully carried out their rights and obligations and neither parties’ contractural rights have been frustrated.

In these cases, therefore, the cashback is NOT a capital sum derived from an asset, TCGA92/S22 (1), and is not chargeable to Capital Gains Tax. See CG12040 for more guidance on contractual rights and CG12980 for guidance on capital sums generally.


In certain circumstances, a cashback may be chargeable as income. Normally, this will only apply if the cashback is received in the course of either the recipient’s business or employment. In such cases, you should consult the appropriate guidance or technical specialist if necessary.


You may see schemes in which the cashback is paid in a non-monetary form, for example a motor car, or in a series of payments. These differences should not affect the general treatment of such payments but in any given case it is essential to review all the available documentation including the terms of the offer and the requirements and obligations it imposes on both parties.