# Ex-Gratia Payments basic exemption



## carpetrug (19 Aug 2020)

Hi

If a Director is leaving 2 unconnected companies (not part of a group) at the same time can the Ex-Gratia Payments basic exemption be applied individually to each of the 2 lump sum payments or is it one exemption per person which is applied to the combined value of 2 payments 

i.e.
No pension involved 

Company A  pays a lump sum up to the allowed basic exemption of EUR20,160 + 765 per full year of service
& Company B also pays a lump sum up to the allowed basic exemption of EUR20,160 + 765 per full year of service

Can exemption be applied to both payments i.e. are both tax free or can the limit only be applied to the total in which case one payment would be taxable

Thanks for your help


----------



## carpetrug (21 Aug 2020)

after a bit of research and for the benefit of anyone else having a similar query it appears that an individual is only entitled to this exemption once in a 10 year period


----------



## carpetrug (30 Sep 2020)

In correction to the above - it is the EUR10000 "increase in the Basic Income Tax Exemption" that an individual is only entitled to once in a 10 year period

If a director is leaving 2 companies at the same time then they can qualify for 2 Ex-Gratia Payment Exemptions as long as it can be demonstrated that they played an active role in each company (only one payment can include the EUR10000 increase in the Basic Income Tax Exemption)


----------

