Former employees of Roadchef at Pont Abraham's service station are one step closer to receiving funds from an employees share-option scheme after HMRC has agreed to release millions of pounds wrongly paid in tax.

Around 4,000 employees of the motorway catering firm were promised shares when the company set up a share-option scheme back in 1986, but a large number of the shares were later moved to an alternative trust. Former employees have claimed they lost out when the company was then sold in 1998.

A settlement was reached in 2015 with millions of pounds from the scheme being paid in tax. A campaign has since been run – supported by local MP Jonathan Edwards – to see the £10million paid in tax repaid to workers' trustees.

This week HMRC has agreed to release the monies which were paid in tax – a move which the Carmarthen East and Dinefwr MP said brings former employees a step closer to receiving what they are owed.

Welcoming the news, Jonathan Edwards MP, a member of the Roadchef Trustees campaign group, said: "There remains a way to go. While it's not often the taxman agrees to fork out money – not least around £10million – we have a job of work to do to ensure all of those who have lost money now get what they are owed.

"That said I am delighted to have played a part in this campaign. This is another example of people coming together to campaign against an injustice. It may take some time, but working together, we have achieved a fantastic result.

"There are a number of my Carmarthenshire residents who have been hit by this injustice who are now one step closer to getting money that is rightfully theirs."