Citation and commencement

1. These Regulations may be cited as the Horizon Convictions Redress Scheme (Amendment) and Grenfell Support (Restorative Justice) Programme (Income Tax Exemption) Regulations 2025 and come into force on 7th August 2025.

Amendment of the Horizon Convictions Redress Scheme and Horizon Shortfall Scheme Fixed Sum Award (Tax Exemptions and Relief) Regulations 2024

2.—(1) The Horizon Convictions Redress Scheme and Horizon Shortfall Scheme Fixed Sum Award (Tax Exemptions and Relief) Regulations 2024(2) are amended as follows.

(2) In regulation 2(1) (interpretation), in the definition of “Horizon Convictions Redress Scheme compensation payment”—

(a)after “to a person” insert “eligible for compensation”;

(b)for “to compensate people who have a conviction involving the Horizon system quashed by legislation” substitute—

“and who—

(a)had a conviction involving the Horizon system quashed by legislation,

(b)had a conviction involving the Horizon system quashed by a court,

(c)received a caution of any kind for an offence involving the Horizon system,

(d)in Scotland received an alternative to prosecution within the definition given in section 4(5) of the (Post Office (Horizon System) Offences (Scotland) Act 20243) or received a purported alternative to prosecution from the Post Office Limited(4), or

(e)was the subject of a criminal prosecution involving the Horizon system but was not convicted”.

(3) In regulation 3(2) (income tax exemption) at the end insert “, subject to paragraph (3)”.

(4) After regulation 3(2), insert—

“(3) For payments within sub-paragraphs (b), (c), (d) and (e) of the definition of “Horizon Convictions Redress Scheme compensation payment”, this regulation applies to payments received on or after 3rd June 2025.”.

(5) In regulation 4(2) (capital gains tax exemption) at the end insert “, subject to paragraph (3)”.

(6) After regulation 4(2), insert—

“(3) For payments within sub-paragraphs (b), (c), (d) and (e) of the definition of “Horizon Convictions Redress Scheme compensation payment”, this regulation applies to disposals made on or after 3rd June 2025.”.

(7) In regulation 5(2) (inheritance tax relief) at the end insert “, subject to paragraph (3)”.

(8) After regulation 5(2), insert—

“(3) For payments within sub-paragraphs (b), (c), (d) and (e) of the definition of “Horizon Convictions Redress Scheme compensation payment”, this regulation applies to deaths occurring on or after 3rd June 2025.”.

Exemption from income tax for payments made under the Grenfell Support (Restorative Justice) programme

3.—(1) A payment made by the Royal Borough of Kensington and Chelsea under the Grenfell Support (Restorative Justice) programme as a result of a person’s eligibility, is a qualifying payment for the purposes of paragraph 3 of Part 1 of Schedule 15 to the Finance Act 2020.

(2) In this regulation, “ Grenfell Support (Restorative Justice) programme ” means the scheme approved by the Royal Borough of Kensington and Chelsea on 5th June 2024 for people who were affected by the fire at Grenfell Tower on 14th June 2017.

(3) This regulation has effect in relation to payments received on or after 5th June 2024.