Commons Sense

House of Commons · Written Ministerial Statement

Tax exemptions for compensation payments paid by the Post Office for Overturned Historical Convictions

23 September 2022 · Treasury

Proposed by Richard Fuller Con North Bedfordshire

Taxation

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • Tax exemptions will be provided for compensation payments made by the Post Office to postmasters with overturned convictions.
  • The Government will ensure that no taxes, including income tax and capital gains tax, are levied on these compensation payments.
  • Legislation will cover National Insurance contributions, inheritance tax, and VAT for the affected compensation payments.

Issue summary

The statement addresses tax exemptions for compensation payments made by the Post Office to postmasters who have had their convictions overturned due to the Horizon scandal.

Action requested

The Government is announcing that victims will not pay any taxes on compensation payments, including those already received. The Government will legislate to exempt these payments from income tax, capital gains tax, National Insurance contributions, inheritance tax, and VAT where necessary.

Key facts

  • The Post Office Horizon scandal has affected postmasters over the past 20 years.
  • Interim compensation payments of up to £100,000 have been made to postmasters with quashed convictions.
  • HM Revenue and Customs will not collect any tax that may have been due on payments already made.
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