Not all Horizon compensation will be tax free

There are currently three forms of compensation being awarded to subpostmasters following the Horizon scandal and each will have different tax implications. It is important for the recipients to understand these and include the right amounts on their self assessment (SA) tax returns.

Group litigation order and overturned convictions schemes

The group litigation order (GLO) scheme is an ex gratia claims-based scheme for subpostmasters who were part of the action Alan Bates and Others vs Post Office Ltd. Subpostmasters who were convicted of a Horizon-related criminal offence are not eligible to apply for compensation under the GLO.

In March 2024 the government legislated to automatically quash convictions relating to the Horizon scandal. Those subpostmasters can apply for compensation under the overturned convictions (OC) compensation scheme.

Because a significant proportion of the GLO payouts were swallowed up by legal fees, and to ensure fairness between compensation schemes, the government has offered an optional fixed sum settlement of £75,000 (inclusive of interest) to all eligible claimants in the GLO scheme. This will be paid net of any payouts already received.

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