Redundancy/Ex-Gratia on Form 11

Person A received tax free statutory redundancy plus tax free ex-gratia payment. Does this have to be declared on Form 11?

Yes.
Also note that you can use this form to claim top-slicing relief (if relevant) on your redundancy.

A Claim for top slicing relief in the circumstances your friend is in is very important, they should claim as soon as possible by completing a tax return for the year your pal was made redundant as soon as possible into the tax year following your friends redundancy, could be worth quite a penny..

Thanks. Which part of the form does the tax-free redundancy need to be declared on?

Squonk said:

Yes.
Also note that you can use this form to claim top-slicing relief (if relevant) on your redundancy.

Click to expand...

Hi Squonk,

Are you sure about that - what section of the Form11 should that be declared in? I was under the impression that those statutory redundancy payments and ex-gratia payments did not need to be accounted for on the Form11.

Thanks.

No sign of Squonk - does anybody else know the answer to the question - do tax free redundancy payments need to be recorded on the Form11?

See Line 216 & 217 in Form 11

216. Income from Irish employment not subjected to PAYE (include payments received on commencement/cessation of employment, restrictive covenants, etc.)
(a) Amount chargeable to tax
(b) Nature of Payment(s)
217. Amount of Top Slicing Relief (TSR) claimed in 2011

You enter the amount of ex-gratia redundancy received that is chargeable to tax into Box 216a and then you enter the amount of top-slicing relief claimed in Box 217

Box 414 is for Other Exempt Income (not already covered by the other sections in Section G of the form) so I suppose you could enter the Statutory redundancy and the non-taxable element of the ex-gratia redundancy in there if you want!

Hi DB74,

Thanks for the reply - in this case though the original query was in relation to a tax-free redundancy payment (statutory + allowable lump sum). So my understanding is nothing is required in section 216 and 217 is only relevant if claiming top slicing relief - which again is not relevant because there would be no taxable sum.

Box 414 is interesting - wonder if it is mandatory though or good practice to incvude the payment there....thoughts?