Publish proposals for equal tax treatment of compensation payments
DBT shall publish within 28 days of the publication of this report its proposals for ensuring that applicants to all schemes are treated equally and fairly in respect of liability to Income Tax, Capital Gains Tax, and Inheritance Tax on compensation payments.
How was this assessed?
Response
Accepted
Response
AcceptedDepartment for Business and Trade accepts this recommendation. Payments under the GLO scheme and overturned convictions are exempt from Income Tax, National Insurance contributions, and Capital Gains Tax. HSS claimants receive top-up payments that are similarly exempt from tax. All schemes are exempt from Inheritance Tax.
Progress Timeline
Verification: Interim report recommendations largely implemented through Post Office (Horizon System) Compensation Act 2024 and scheme operational changes. HSS closing date set as 31 January 2026. Sir Gary Hickinbottom appointed to oversee scheme fairness.
Government response: Accepted. Department for Business and Trade accepts this recommendation. Payments under the GLO scheme and overturned convictions are exempt from Income Tax, National Insurance contributions, and Capital Gains ...
Published Evidence
Published assessments of implementation progress from inspectorates, select committees, official progress reports, and other sources. Check the source type badge to see whether each assessment is independent or government self-reported.
Compensation payments under the GLO scheme and for quashed convictions were exempted from Income Tax, National Insurance and Capital Gains Tax, fulfilling the requirement in this recommendation.