In 2009 I was made redundant and received a lump sum payment in addition to statutory redundancy.
In 2012 I re-joined the same company and now find myself about to be made redundant again.
I have 3 years’ service and will receive another lump sum in addition to statutory.
The total ex gratia payments from both redundancies is less than 200,000
Am I correct in assuming that no enhanced tax relief can be claimed for the lump sum this time and that it would all treated as income and subject to income tax, usc, etc?
From Revenue leaflet IT21 http://www.revenue.ie/en/tax/it/leaflets/it21.html#section4
Subsequent Claim
A basic exemption and an increase for SCSB, are generally available against any subsequent lump sum payment, subject to the €200,000 lifetime limit from a different employer. However, they can only be given once against a lump sum from the same employer or an associated employer.
In 2012 I re-joined the same company and now find myself about to be made redundant again.
I have 3 years’ service and will receive another lump sum in addition to statutory.
The total ex gratia payments from both redundancies is less than 200,000
Am I correct in assuming that no enhanced tax relief can be claimed for the lump sum this time and that it would all treated as income and subject to income tax, usc, etc?
From Revenue leaflet IT21 http://www.revenue.ie/en/tax/it/leaflets/it21.html#section4
Subsequent Claim
A basic exemption and an increase for SCSB, are generally available against any subsequent lump sum payment, subject to the €200,000 lifetime limit from a different employer. However, they can only be given once against a lump sum from the same employer or an associated employer.