Citation and commencement

1. These Regulations may be cited as the Horizon Shortfall Scheme Appeals (Tax Exemptions and Relief) Regulations 2025 and come into force on 28th April 2025.

Interpretation

2.—(1) In these Regulations “Horizon Shortfall Scheme Appeals” means the Scheme for an independent appeals process created by the Department for Business and Trade to assess compensation claims made under the Horizon Shortfall Scheme and make payments of compensation.

(2) For the purposes of provision in these Regulations made under Part 1 of Schedule 15 to the Finance Act 2020, “Horizon Shortfall Scheme” has the same meaning as it does in Part 2 of that Schedule(2).

Exemption from income tax for Horizon Shortfall Scheme Appeals payments

3.—(1) A payment made by the Department for Business and Trade to a person under the Horizon Shortfall Scheme Appeals is a qualifying payment for the purposes of paragraph 3 of Part 1 of Schedule 15 to the Finance Act 2020.

(2) This regulation has effect in relation to payments received on or after 28th April 2025.

Exemption from capital gains tax for Horizon Shortfall Scheme Appeals payments

4.—(1) A payment made by the Department for Business and Trade to a person under the Horizon Shortfall Scheme Appeals is a qualifying payment for the purposes of paragraph 4 of Part 1 of Schedule 15 to the Finance Act 2020.

(2) This regulation has effect in relation to disposals made on or after 28th April 2025.

Relief from inheritance tax for Horizon Shortfall Scheme Appeals payments

5.—(1) A payment made by the Department for Business and Trade to a person under the Horizon Shortfall Scheme Appeals is a qualifying payment for the purposes of paragraph 5 of Part 1 of Schedule 15 to the Finance Act 2020.

(2) This regulation has effect in relation to deaths occurring on or after 28th April 2025.

Exemption from Corporation Tax for Horizon Shortfall Scheme Appeals payments

6.—(1) A payment made by the Department for Business and Trade to a person under the Horizon Shortfall Scheme Appeals is a relevant compensation payment for the purposes of Part 2 of Schedule 15 to the Finance Act 2020.

(2) This regulation has effect in relation to payments received on or after 28th April 2025.

Exemption from income tax and capital gains tax for relevant onward payments for Horizon Shortfall Scheme Appeals payments

7.—(1) Paragraph 10(3)(b) of Part 2 of Schedule 15 to the Finance Act 2020 has effect in relation to payments received on or after 28th April 2025 for payments made under the Horizon Shortfall Scheme Appeals.

(2) Paragraph 10(4)(b) of Part 2 of Schedule 15 to the Finance Act 2020 has effect in relation to disposals made on or after 28th April 2025 for payments made under the Horizon Shortfall Scheme Appeals.