Loss of office tax free sum available?

[PatrickDub]

Hello,

A friend has been told their position within the company is now redundant. They are an employee with many years service. They have two choices ; take redundancy, or move to another position within the company with different conditions and a reduction in salary.

They have been advised that they will receive E2,500 in "loss of office" compensation if they move to the other position in the company.

Is this sum taxable? They are of the belief that up to E10,000 can be received tax free.

Thanks

 

[Ildánach]

I'm not aware of any provisions which apply to this directly. Loss of office compensation is definitely NOT a redundancy payment however, and therefore unless there are specific rules that apply to this, it would not be tax free!