IHTM10283 - Post Office Horizon Compensation Schemes

In 1999 the Post Office introduced a computer system to its network called Horizon. Following its introduction there were complaints from sub-postmasters that there were problems with the Horizon system which incorrectly showed there were shortfalls in takings. These complaints were not accepted and postmasters either made up shortfalls from their own resources or, in some cases, were prosecuted in connection with these ‘losses’.

In December 2019 the High Court identified shortcomings with the Horizon system. This led to the Post Office compensating a group of postmasters who had made up the shortfalls identified by the Horizon system and subsequently led to the overturning of criminal convictions.

Following the court case, Post Office Limited are paying compensation to post masters under a number of different schemes depending on how they were affected. The compensation schemes are:

• The Overturned Conviction scheme (OC),
• The Horizon Shortfall Scheme (HSS), and
• The Group Litigation Order scheme (GLO)

Relief from IHT is available in respect of payments made under these schemes. The relief is calculated in the same way as for payments made under compensation schemes for wrongs suffered during World War II and the instructions at IHTM04423 should be followed.