Re: Tax on Reduncancy payment
Am investigating this for myself at the moment, as in the same boat as your husband.
On your first redundancy or retirement payment, the higher of the following will be exempt from tax:
Basic Exemption (Already Discussed)
Increased Exemption
Standard Captial Superannuation Benefit (SCSB)
Increased Exemption
If you are not a member of an occupational pension (superannuation) scheme or if you irrevocably give up your right to receive a lump sum from the pension scheme, the basic exemption (€10,160 plus €765 for each full year of service) can be increased by €10,000. The increased exemption can only be claimed if you have not made any claims in respect of a lump sum received in the previous 10 years.
If you are in an occupational pension scheme, this increased exemption of €10,000 is reduced by the amount of:
Any tax free lump sum from the pension scheme to which you may be immediately entitled:
OR
The present day value at the date of leaving employment of any tax free lump sum which may be receivable from the pension scheme in the future.
SCSB (Standard Captial Superannuation Benefit)
This relief generally benefits those with high earnings and long service.
The basic formula is
(AxB/15) - C where:
A: Is the average annual remuneration for the last 36 months service to date of termination
B : Is the number of complete years of service
C: Is the value of any tax free lump sum received/receivable under an approved pension scheme.
Again, there's in's and outs to it, but thats the basic formula.
If your husband is getting any salary or wages in lieu of notice, there may also be relief/exemption unless the contract of employment provides for a payment of this kind on the termination of the contract.
This should give you an idea of what the figures are, but bear in mind, without knowing a person's exact personal circumstances, it is very difficult to give any more than just basic outlines, as the there are terms and conditions which apply to each of the above.
Hope this helps.