On Nov. 5, 2025, UK GVT issued updated guidance document on the Capture Redress Scheme: Legal Costs Frameworkwebpage, which was first published Oct. 29, 2025.
Sets out what those costs are and lists the legal representatives that have already agreed to work to them; in the revised version, Bailoran Solicitors is added to this list.
On Feb. 24, UK GVT updated on progress of compensation schemes.
UK GVT and Insolvency service provided a progress update on compensation for postmasters subject to bankruptcy orders who are due compensation on a new page.
Compensations for losses suffered as a result of the Post Office’sHorizon IT system.
Information relating to compensation schemes removed from its original page.
Follows UK GVT Jul. 2021 seek information from former postmasters, see #93317.
Progress Update
Insolvency Service is working closely with the Post Office, UK DBT in relation to claims for compensation, submitted by former bankrupts to the Historical Shortfall Scheme.
Compensation awarded for personal losses, i.e. damage to reputation, do not form part of bankruptcy estate and will be paid by the Post Office to former postmasters.
Progress update covers group litigation order and overturned historical conviction.
Insolvency Service continues to work with the UK DBT to ensure compensation payments in these situations are made in a timely manner to former postmasters.
Former postmasters who have experienced shortfalls related to the Horizon system but have not yet submitted a claim may submit late applications on the Schemewebsite.
Sep. 2024 Scheme Updates, Malicious Prosecution
On Sep. 27, 2024, UK GVT updated re. Horizon Convictions Redress Scheme and Overturned Historical Conviction Scheme to include reference to malicious prosecution.
In cases where former postmasters were previously subject to a bankruptcy order and are now discharged, neither interim payment nor future payment for malicious prosecution are due to bankruptcy estate, will be paid in full to former postmasters.
UK Insolvency Service will continue to work with schemes’ administers, Department for Business and Trade, to ensure payments made in timely manner to former postmasters.
Jun. 2025 £1 Billion Compensation Milestone
On Jun. 9, 2025, UK GVT reported more than £1bn paid to over 7,300 postmasters affected by Horizon IT scandal, one of biggest miscarriages of justice in recent times.
Marks UK GVT's ongoing commitment to deliver redress/justice as swiftly as possible.
Other milestones include launching the Post Office Process Review (PPR), intended to help provide redress to postmasters who suffered financial losses caused by the products, processes or policies that were designed or delivered incorrectly.
Beginning Horizon Shortfall Scheme fixed-sum payments of £75,000 for those who don’t want to go through the full assessment process; announcing upcoming Green Paper which will give the public the chance to have their view on future of Post Office.
Committed to develop fair redress process for those affected by capture IT system.
Jun. 19, 2025 Capture Redress Scheme
On Jun. 19, 2025, UK GVT Department for Business and Trade announced details of the redress scheme for postmasters who suffered financial shortfalls from Capture system.
Capture was a faulty computer system used in 1990s, before the Horizon scandal.
Independent investigation by Kroll Associates concluded there was a reasonable likelihood that Capture created financial shortfalls for postmasters, UK GVT accepts the findings and has created Capture Redress Scheme to provide fair compensation.
Scheme expected to open for applications in autumn 2025, with initial phased rollout for 150 claimants to ensure process is fair, proportionate and accessible.
The redress scheme has been specifically designed to address the unique challenge of cases dating back over two decades, where documentation may be limited; UK GVT will set out funding to cover postmasters' legal costs in the coming weeks.
Features a 2-stage process with initial eligibility review followed by independent panel assessment; prompt preliminary payment for eligible claimants, with early acknowledgement of loss; holistic approach considering financial and personal impact.
Guided scoring and banding model for consistency in awards, including flexibility.
Postmasters are eligible to apply if they were postmaster between 1992 and 2000, used Capture system, and suffered financial shortfall due to Capture software error.
Further details on applying to the scheme will be published in the coming months.
Oct. 2025 UKP Statement on Redress Tax
On Oct. 27, 2025, UKP issued statement by Lord Livermore on UK Treasury Secretary, Dan Tomlinson's written ministerial statement on the Capture compensation scheme.
UK GVT has set up the Capture Redress Scheme (CRS) to compensate postmasters.
In addition, in its objective to treat postmasters fairly, UK GVT will legislate to formalize tax exemptions shortly, ensuring that the redress will not be taxed.
This means redress received under CRS will not be subject to income tax, national insurance contributions (NICs), capital gains tax, corporation tax or inheritance tax.
Oct. 29, 2025 UK GVT Redress Regulations
On Oct. 29, 2025, UK GVT reported launch of the Capture Redress Scheme (CRS).
The CRS was created via input from victims to ensure delivery of redress as swiftly as possible, including immediate preliminary payments for eligible claimants.
These payments will be made before a full assessment by an independent panel, and the scheme will be tested for first 150 claimants before full roll-out, accordingly.
On same day, UK HMRC issued the Post Office Capture Redress Scheme (Tax Exemptions and Relief) Regulations 2025 (StIn 2025/1130), and memorandum.
The instrument exempts CRS compensation payments from income tax, capital gains tax (CGT), corporation tax (where applicable), and relief from inheritance tax (IHT).
Also includes those made as onward payments or to those who were a company director/shareholder or a partner in a partnership which no longer exists.
This is relevant for such scenarios that would have been eligible for compensation.
In this context, exemptions and the relief will apply retrospectively eff. Oct. 27, 2025 which is the earliest date that the CRS will open to compensate relevant postmasters.
The StIn 2025/1130 regulations will come into force on Nov. 20, 2025.
Oct. 30, 2025 UK HMRC Tax Treatment Policy
On Oct. 30, 2025, UK HMRC issued policy paper on tax treatment for payments made under the Capture Redress Scheme (CRS) from inheritance tax from other taxes.
These taxes include income tax, capital gains tax, corporation tax (where applicable), and national insurance contributions (NICs) to support redress for postmasters.
In order to avoid administrative or financial burdens for compensated postmasters, UK HMRC will deliver two statutory instruments, one of which is StIn 2025/1130.
The second statutory instrument will exempt the payments from NICs, accordingly.
Revisions for income tax and related exemptions will be via amendments under sched. 15 of the Finance Act 2020 (FA 2020), and inheritance tax has a separate exemption.
This will be introduced as per previous Post Office compensation schemes.
Part 10 of sched. 3, Social Security (Contributions) Regulations 2001 will be amended via a new paragraph after para. 32 to disregard payments from Class 1 NICs.
UK HMRC will make the measure as set out in the policy, effective Nov. 20, 2025.
Nov. 4 2025 Redress Scheme Applications
On Nov. 4, 2025, UK GVT updated Apply to the Capture Redress Schemewebpage.
First published on Oct. 29, it explains the process and now includes a link to new Required information and documentation webpage, which contains a breakdown of information applicants/personal representatives must submit with their applications.
Capture Redress Scheme: countersignatory informationwebpage (published Oct. 29) was also updated; this contains a list of acceptable proof of address documents.
Updated countersignatory form signature instructions to accept electronic signatures.
Nov. 5, 2025 Legal Costs Framework
On Nov. 5, 2025, UK GVT issued updated guidance document on the Capture Redress Scheme: Legal Costs Frameworkwebpage, which was first published Oct. 29, 2025.
Sets out what those costs are and lists the legal representatives that have already agreed to work to them; in the revised version, Bailoran Solicitors is added to this list.
