Increased Tax Exemption

liamg67

A friend of mine is facing redundancy from a company she has worked for over the last 10 years. She has been advised of a severence package but the employer is unable to give clarity around the tax implications and they will probably ourtsource this process.

We understand that she will get the basic exemptions and the statutory is non taxable either.

However neither revenue or employer is able to clarify whether or not she is elligible for the increased exemption. She is in a company pension scheme but there is no lump sum payable on retirement.

The revenue werbsite seems to suggest yes she would qualifiy but we do not know who can confirm this - refering to IT21.

Appreciate any advice.

Hungrycol

If your friend has not availed of it in past employment she is entitled to the additional €10k increased exemption but her employer must get Revenue prior approval to use it.

Her employer should utilise the best exemptions available to her at the time of making the termination payment so they should calculate SCSB also.

4JAKE

as above

liamg67

Thanks for the confirmation