Income tax position of Post Office compensation claims

The tax position of the Post Office compensation claimants is not straightforward. My firm Milsted Langdon is pleased to be assisting compensation claimants under the various Post Office schemes. Our forensic accountancy team has now helped hundreds of the claimants receive the financial compensation they deserve although no amount of money can compensate these claimants for the undue stress and pain they have suffered.

Once a compensation claim is processed the tax implications of the compensation received need to be carefully considered. We are dealing with several tax returns for the claimants and given the amount of time it has taken to reach this point this includes some from earlier tax years.

Two early schemes

The compensation for Group Litigation Order and Overturned Historical Conviction Schemes falls within the exemptions from income tax under FA 2020 Sch 15 and the exemptions from National...