Top slicing relief on ex gratia payments gone. Tax-free lump-sum not affected

Yes just like angler id really like to know if todays announcement only applies to redundancy payments after jan 2014 or for any payments recieved in 2013?

Thanks to all who helped clarify the taxation of ex-gratia redundancy lump sums, versus pension lump sums.

It is clearer to me now, hopefully I get it now.

Thanks again guys, including DB74, mandelbrot, 1dave123, angler and Brendan......

cotteb said:

Yes just like angler id really like to know if todays announcement only applies to redundancy payments after jan 2014 or for any payments recieved in 2013?

Click to expand...

http://www.budget.gov.ie/Budgets/2014/Documents/Summary of Budget 2014 Taxation Measures.pdf

This document indicates the yield from the change will be zero in 2014 for the Govt so looks like you are ok.
They give the relief for you in Jan 2014 because they have to wait until then to see your effective rate for the full of 2013.

I am taking a voluntary redundancy package in December this year.does that mean I cant claim any tax back in janurary 2014?

Post #11 outlines the tax free amount you will still get.
Change the example for your own figures and see.
Only the top slicing relief is abolished.

If you want to check out the newstalk website experts from price warehouse cooper were answering questions from people after the budget and said any redundancy payments recieved in 2013 would still recieve top slicing in jan 2014,These answers to the top slicing questions can still be viewed on the site.

Morning goingforgold

Don't forget to add in the statutory redundancy element ... [(39 years x 2 weeks) + 1 week] = 79 x 600 = €47,400

€130,000 + €47,400 = €177,400

The present value of future tax free lump sum from the pension plan would reduce this - unless the person waives the right to the pension scheme lump sum

Perhaps have a quick re-read of DB74s original post.

Cheers

Hello Everybody, I am new here. Bear with me if i am making mistakes. Top Slice tax on exgratia will be abolished in 2014, does that means that there will be no more tax back in the following year ?

Folks, stop bickering please. I have deleted lots of posts.

I started the confusion as I misunderstood the Minister's speech yesterday in my hurry to post it. I apologise for any heart attacks caused to people getting lump sums in the near future.

But if others make mistakes on, what are complicated issues, correct them and move on. No need to take the thread off topic calling them names.

budget 2914. top slicing abolition

I have got advice from a taxation consultant and i can
confirm that if you got a redundancy payment in 2013
top slicing will apply. However if you get a red payment
after 31dec 2013 top slicing will not apply.