Commons Sense

House of Commons · Written Ministerial Statement

Tax exemption for Horizon Shortfall Scheme appeals process

13 March 2025 · Treasury

Proposed by James Murray Lab Co-op Ealing North

Taxation

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

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At a glance

Key points

  • Tax exemption introduced for compensation received through the Horizon Shortfall Scheme Appeals process
  • No taxes will be payable on compensation under this scheme
  • Government plans to formalise the tax exemption through secondary legislation shortly

Issue summary

This statement addresses the introduction of a tax exemption for compensation received through the Horizon Shortfall Scheme Appeals process.

Action requested

The Government will ensure that no taxes are payable on any compensation received, and intends to formalise this tax exemption via secondary legislation shortly.

Key facts

  • The Department for Business and Trade is introducing an independent HSSA process.
  • No income tax, Capital Gains Tax, National Insurance contributions, corporation tax, or inheritance tax will be payable on compensation received through the appeals process.
  • The Government will legislate via secondary legislation to formalise this tax exemption shortly.
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