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Tax exemptions under the Grenfell Support (Restorative Justice) programme and the Expanded Horizon Convictions Redress Scheme

16 July 2025

Proposing MP
James Murray Lab Co-op
Ealing North
Type
Written Ministerial Statement
Department
Treasury

At a Glance

Issue Summary

The statement addresses tax exemptions for payments made under two programmes: the Grenfell Support (Restorative Justice) programme and the Expanded Horizon Convictions Redress Scheme.

Action Requested

The Government will legislate to exempt payments from Income Tax for both the Grenfell Support (Restorative Justice) programme retrospectively from June 5, 2024, and the Expanded Horizon Convictions Redress Scheme starting June 3, 2025. HMRC is exploring options to proactively contact tax credit customers who have received any payments under these programmes.

Key Facts

  • Payments made under the Grenfell Support (Restorative Justice) programme are exempt from Income Tax.
  • Legislation applies retrospectively from June 5, 2024.
  • HMRC will not collect Income Tax on payments made between June 5, 2024, and the date legislation takes effect.
  • The Expanded Horizon Convictions Redress Scheme was expanded on June 3, 2025, to include postmasters with overturned convictions, prosecutions without convictions, and those receiving cautions or alternatives to prosecution.
  • Compensation payments in the Expanded Horizon Convictions Redress Scheme will be exempt from Income Tax, National Insurance contributions, Capital Gains Tax, and Inheritance Tax.
Assessment & feedback
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