# Does the Income Levy apply to Redundancy Payments?



## Brendan Burgess (9 Jan 2009)

Is the Levy charged on Redundancy payments?


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## Brendan Burgess (13 Jan 2009)

In the new PDF  [broken link removed]issued by the Revenue yesterday, it says 



> 1.11 Will redundancy payments be subject to the levy?
> 
> Statutory redundancy payments are exempt from the levy. ...
> 
> ...





> *Appendix B  Exempt Income Sources *
> Section 201    Basic and increased exemptions in respect of tax under section 123 (Redundancy) excluding SCSB and TSR
> 
> Section  203  Payments in respect of Redundancy


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## Brendan Burgess (13 Jan 2009)

So the amount exempt will generally be 

€20,120 + €765 per year of complete service. 


If you don't qualify for the increased exemption of €10,000, then the amount exempt will be €10,120 + €765 per year of service.

Ignore SCSB and Top Slicing Relief


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## Fairplay (14 Jan 2009)

Brendan,

The last paragraph on page 4 seems to give a concessionary treatment in relation to SCSB:

"Following consultations regarding the above treatment, the Revenue Commissioners will now allow the same treatment for income levy purposes as applies for income tax purposes in relation to redundancy payments, as an administrative concession. That is, the income levy will be charged after granting any additional relief or deduction for Standard Capital Superannuation Benefit (SCSB). The Department of Finance will bring forward proposals for legislative change to support this concession in the next Finance Bill. "


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## Meathman123 (17 Jan 2009)

First post so hope I don't make a mess of this. 


In work we are currently implementing a redundancy scheme (voluntary thankfully) Income levy is one of the issues I have looked at. I have been keeping an eye on the Income Levy FAQ document on the Revenue site. That I am aware of there has been 3 versions of this document.

1 somestage in December - It made reference to Basic & Increased Exemption being deductable but not the scsb. However, the CG's office confirmed orally that the scsb was not levyable.

Another version on the 9th of Jan - Saying the same as Dec for Basic & Increased Exemption but scsb is levyable ??? Raised a query on this with CG and our case officer in LCD. 

Current version on the 14th of Jan adding the paragraph quoted by Fairplay above. Got confirmation from LCD re treatment on the 15th. 

Seems like Revenue are as confused on this as many of the rest of us are.


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## irishpancake (7 Feb 2010)

I think it's only fair to point out that information given by Brendan at the start of this thread, has been superseded by later versions, the latest is 30th Nov. 2009.

The Para quoted by Brendan now reads:



> 1.11 Will redundancy payments be subject to the levy?
> 
> Statutory redundancy payments are exempt from the levy. Statutory redundancy payments amount to 2 weeks pay per year of service plus a bonus week subject to a maximum payment of €600 per week.
> 
> ...


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