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Tax Exemption – Horizon Family Members Redress Scheme

My honourable friend the Minister for Small Business and Economic Transformation at the Department for Business and Trade (Blair McDougall), announced the Horizon Family Members Redress Scheme on 19 March 2026. The scheme offers redress to close family members of postmasters whose lives were significantly affected by failures in the Horizon IT system.

The Government is committed to ensuring that family members of postmasters receive their compensation with minimal administrative burden and will legislate to formalise tax exemptions shortly, ensuring that no income tax or capital gains tax will be payable for redress received related to this scheme. The legislation will also relieve these payments from inheritance tax. Existing legislation ensures that National Insurance contributions will not be due.