Due to being made redundant in Feb (of this year) I had reduced normal income on which I could make an AVC to achieve the maximum allowable tax free pension contribution. I later got the idea (can't remember where) that the taxable element of my ex-gratia payment could have been considered as 'Income for pension relief purposes' in the calculation of the max tax free pension contribution & thus would have increased my possible AVC contribution considerably.
I phoned Revenue twice & nether person could confirm or discount the taxable ex-gratia as being allowable in the calculation. I submitted enquiry on RoS but have not got a response yet (3 weeks now).
Would anyone be able to provide guidance or experience on this?
Background; 64 yr old married PAYE worker made redundant in Feb this year (2025) with 15 years service. Received redundancy payments consisting of a) Statutory (tax free); b) Ex-gratia Basic Exemption (tax free); c) Ex-gratia Balance (tax at source at 40%).
I phoned Revenue twice & nether person could confirm or discount the taxable ex-gratia as being allowable in the calculation. I submitted enquiry on RoS but have not got a response yet (3 weeks now).
Would anyone be able to provide guidance or experience on this?
Background; 64 yr old married PAYE worker made redundant in Feb this year (2025) with 15 years service. Received redundancy payments consisting of a) Statutory (tax free); b) Ex-gratia Basic Exemption (tax free); c) Ex-gratia Balance (tax at source at 40%).
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