Increased Exemption - Redundancy

[Sunny]

I think I know the answer to this but thought I will ask anyway. Going to be made redundant and it looks like the termination date will be 2 months before the 10th anniversary of my last redundancy. I know you can't claim increased exemption if you have already taken a tax free amount in the previous 10 years. Anyone know if this 10 year rule is written in stone? I am going to lose a significant amount of money for the sake of two months. There is no option to change the Termination Date as the company won't exist.

 

[ginslia]

increased exemption isn’t the only redundancy tax Relief calculation, there is also the SCSB calculation of (avg salary for last 3years) * yrs service/15. This is reduced by any pension lump sum. The calculation includes partial years, and salary is everything from your employer that you paid USC on, so bonus, bik are included, and it’s before any pension contribution).

Unfortunately any statutory calculations are based on full (rounded down) years.

 

[Sunny]

increased exemption isn’t the only redundancy tax Relief calculation, there is also the SCSB calculation of (avg salary for last 3years) * yrs service/15. This is reduced by any pension lump sum. The calculation includes partial years, and salary is everything from your employer that you paid USC on, so bonus, bik are included, and it’s before any pension contribution).

Unfortunately any statutory calculations are based on full (rounded down) years.

Yeah I know but the SCSB doesn't really work for people with short service.

Also statutory redundancy takes into account partial years service. It is the ex gratia part that is usually on full year basis and rounded down.