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 the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more

Value Added Tax

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more

Corporation Tax

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more

��Ӱ��