My employer has a voluntary severance program currently on offer. I'm not really thinking about it but thought I'd check out my entitlement. I was surprised to see the following on a form I was given to find out my entitlement.
"Section 201(8) Taxes Consolidation Act 1997 provides a lifetime tax exempt ceiling of €200,000 on ex-gratia termination payments arising on or after 1 January 2011. Exemption amounts previously utilised or claimed by an individual must be offset against the ceiling. In addition, one of the available tax-free exemptions, the Increased Exemption, may only be applied against your termination payment subject to certain criteria being met. This form acts as declaration for both of these purposes. "
I had previously received a redundancy payment > 15 years ago. Would that be taken from my €200k limit? I seemed to recall that the tax if previous redundancy was > 10 years ago then the usual tax free element applied?
Any advice would be much appreciated,
Roy
"Section 201(8) Taxes Consolidation Act 1997 provides a lifetime tax exempt ceiling of €200,000 on ex-gratia termination payments arising on or after 1 January 2011. Exemption amounts previously utilised or claimed by an individual must be offset against the ceiling. In addition, one of the available tax-free exemptions, the Increased Exemption, may only be applied against your termination payment subject to certain criteria being met. This form acts as declaration for both of these purposes. "
I had previously received a redundancy payment > 15 years ago. Would that be taken from my €200k limit? I seemed to recall that the tax if previous redundancy was > 10 years ago then the usual tax free element applied?
Any advice would be much appreciated,
Roy