2nd redundancy tax treatment

[Cameo]

Hi

Does anyone know the tax treatment of 2nd redundancy payment in the case where the person opted for SCSB anpproach to determine tax liability (and the first redundancy payment was is the region of €125k)?

Can you apply the SCSB approach again and get rac free up to 200k-the first redundancy payment or is there some other approach.

Many thanks

 

[ginslia]

200k is the lifetime limit for redundancy tax free.
If 125k was the payout last time, was it ALL tax free? Did it include the statutory element?It’s only the tax free element that is capped at 200k.

 

[Cameo]

Thanks, I think there was some tax paid on but it was not very material.

It makes sense that it should be cumulative.

So the first 75k ( or probably more to allow for the tax paid) would be tax free in any second redundancy payment

Assuming the person had enough service… and depending on whether to waive the righ to tax free cash of pension fund etc…

 

[bkenn14]

If I remember correctly waive the right to tax free cash of pension is a bad idea in most cases,
I am not up to date on the latest Information but check it out well If you are thinking of going down that road,