Postmasters’ compensation will be tax-free

No tax will be due on compensation payments to postmasters with overturned convictions as a result of the Horizon scandal.

This will apply to individuals whose convictions are quashed as a result of the Post Office (Horizon System) Offences Bill as well as those in the group litigation order who receive the optional fixed-sum payments of £75 000.

Financial Secretary to the Treasury Nigel Huddleston said: ‘It is the government’s priority to take swift action to ensure affected postmasters receive full and fair financial redress with little administrative burden. That is why the government will ensure that no income tax capital gains tax National Insurance contributions corporation tax or inheritance tax is payable on compensation to be paid to postmasters whose convictions are overturned by the upcoming legislation or by those who benefit from a £75 000 fixed sum payment on the Horizon...