Two Written Ministerial Statements were published on 8 November 2023 about remediation for Postmasters impacted by certain previous policies and processes.
One statement confirms that tax exemptions will apply to the Suspension Remuneration Review that is already under way for impacted current and former Postmasters.
The Government announced that payments to be made under the Suspension Remuneration Review will be exempt from Income Tax, National Insurance Contributions and, where applicable, Capital Gains Tax and Corporation Tax. It will legislate to exempt these payments in due course where necessary. HM Revenue and Customs will not collect any tax on any further payments made until that legislation takes effect.
Approximately 150 payments have already been made under the Suspension Remuneration Review subject to tax. The Government also announced that it will support with funding to make additional top-up payments to these Postmasters, exempt from Income Tax, National Insurance Contributions and, where applicable, Capital Gains Tax and Corporation Tax, to ensure their compensation is not unduly reduced by tax.
The other statement outlined Government support to fund potential remediation for past operational issues.
We have continued to review our operational processes and policies to ensure that, where any further issues are identified, we take steps to investigate and address these. Through this work, we have found some previous operational issues that impacted Postmasters financially. As a result, we plan to establish a review to provide redress to Postmasters affected by these issues. This is separate to the Suspension Remuneration Review and to compensation for Horizon-related shortfalls and for those with overturned convictions.
The statement confirms that the Government intends to support the Post Office Process Review with funding to cover the cost of compensation for Postmasters affected by the issues identified.
This compensation will also be exempt from Income Tax, National Insurance Contributions, Capital Gains Tax and Corporation Tax.
We will share details with current and former Postmasters and on this website in due course - Postmasters don’t need to do anything in response to this in the meantime.
Please click on the following links for more information about the Suspension Remuneration Review and other Post Office compensation routes such as the Horizon Shortfall Scheme and compensation for people with overturned convictions.