Redundancy

Hi,

Is it true that a person is only entitled to one tax free redundancy payment every 10 years?

Thanks

No

Statutory redun is always tax free.

Golden handshake - €10,160 tax free plus €765 per annum tax free plus increased exemption of €10,000 tax free.

It's the increased exemption of €10K that can only be received every ten years. Permission must also be received from Rev to give this 10K.

Hope this helps

thanks, but i am a little confuesed. what is the increased excemption? What is the criteria for qualification for a 10000 increased exemption?

apd said:

thanks, but i am a little confuesed. what is the increased excemption? What is the criteria for qualification for a 10000 increased exemption?

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OK lets say you are working with employer for 6 years.

Your tax free golden handshake will be €10,160 + (€765 * 6) = €14,750.

This can be increased by a further €10K (increased exemption) if you have not received the increased exemption in the past ten year...and if you are not a member of an occupational pension scheme (or give up your right to receive a lumpsum therefrom). If you receive or are entitled to receive a pension lump sum the €10K is so reduced.

So if you get €4K pension lump sum you can add €6K to the €14,750. Thats €20,750 tax free

thank you.


when people retire at 65 they are entitled to receive a lump sum tax free from their pension fund before it is used to purchase an anuity. is this the lump sum you refer to.

or do you mean if when leaving the company you can either transfer your employee pension funds to a new pension scheme or take the money out of the system altogether and keep it (less tax.)

is the latter the lump sum you refer to
if so and I give up my right to recieve a lump sum, does that extend to all future employment, i.e. i can neve get access to my pension funds until retirement

many thanks

Does this 'golden handshake' refer just to redundancy?

If you were leaving a job could you take out a leaving bonus tax free?

Also what's to stop a company giving a redundancy lump sum to someone who's leaving anyway? Is that the same thing?

Redzer said:

If you were leaving a job could you take out a leaving bonus tax free?

Click to expand...

I think so - there was a thread on this specific topic here recently and it dealt with the fact that certain termination payments other than redundancy can be tax free.

Found it around 25/8! Thanks for that.