Post Office Horizon compensation

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

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:

•
background
•
business structure
•
taxation and entitlement to compensation
•
nature of compensation and

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

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

Tax Returns

Personal Tax

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more

Employment Tax

Company cars

Company carsIntroductionCompany cars are one of the most common taxable benefits. The rules for calculating the benefit are complex, and the reporting requirements are more onerous than most benefits. Company cars are covered by very specific legislation. Detailed guidance on each of the following

14 Jul 2020 11:15 | Produced by Tolley Read more

UU��ֱ��