Horizon payments to postmasters exempt from tax

02 August 2024

Issue: 4948 / Categories: News

Two new compensation payments will be exempt from tax and be relieved from inheritance tax. The Horizon Convictions Redress Scheme and Horizon Shortfall Scheme (HSS) Fixed Sum Award (Tax Exemptions and Relief) Regulations SI 2024/818 exempts payments made under the Horizon Convictions Redress Scheme and HSS Fixed Sum Award from income tax National Insurance and Capital gains tax. It also provide inheritance tax relief on these payments. HSS Fixed Sum Award payments are exempt from corporation tax.

The regulations come into force on 16 August 2024 with retrospective effect from 13 March 2024.

The Social Security (Contributions) (Amendment No. 4) Regulations SI 2024/822 provide that Horizon Convictions Redress Scheme compensation payments and HSS Fixed Sum Awards are disregarded from earnings for class 1 NICs purposes. These regulations come into force on 16 August 2024 but HMRC will use their collection and...

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