½Û×ÓÊÓÆµ

Post Office Horizon compensation

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Post Office Horizon compensation

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

This guidance note looks at the various tax exemption available in respect of compensation received by sub-postmasters as a result of the Post Office Horizon scandal.

Issues first arose in 1999 (see ‘Background to Post Office Horizon scandal’). Compensation started to be awarded from 2015 onwards. Tax exemptions for specific compensation packages have subsequently been brought in through statutory instruments in 2023 and 2024.

This timescale of 25 years presents challenges. Delays to compensation awards and the need to submit tax returns including taxable compensation, brings further challenges. The response to the scandal has been piecemeal, both in terms of compensation awards and tax exemptions.

It is necessary to understand the circumstances in which compensation has arisen, and the exact nature of the payments, in order to be confident of the correct tax treatment. The sections below set out the context, complexities, development and the exemptions available.

From a tax viewpoint, there are a number of complexities. These are considered below:

  1. •

    background

  2. •

    business structure

  3. •

    taxation and entitlement to compensation

  4. •

    nature of compensation and

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 22 Apr 2025 05:22

Popular Articles

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more Read more

Maintenance payments

Maintenance paymentsMaintenance payments are payments made by a taxpayer to their former or separated spouse / civil partner for the maintenance of that person or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the

14 Jul 2020 12:12 | Produced by Tolley Read more Read more