Wednesday, February 17, 2010

Redundancy Tax-free Entitlements

Did you know on a redundancy or retirement payment, you are entitled to the higher of the following which is then exempt from tax:

Basic Exemption
The basic exemption due is €10,160, plus €765 for each complete year of service. (This does not include statutory redundancy which is tax free.)

Basic Exemption plus Increased Exemption
An additional €10,000 called the Increased Exemption is also available in the following certain circumstances:

If you haven't received a tax-free lump sum in the last 10 years
If you have never received a tax-free lump sum and you are not getting a lump sum pension payment
If you are in an occupational pension scheme, the Increased Exemption is reduced by any tax-free lump sum from the pension scheme you may be entitled to receive.

If you have any comments or queries please use the comments or email link below.

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