second time redundant

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di74

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My partner is about to be made redundant. He was previously made redundant 8 years ago and got statutory redundancy. Can he avail of the tax exemption basic expemtion again ?
 
Yes. Statutory redundancy is tax free. Is he getting statutory redundancy only ?

From revenue.ie;

"If all of your lump sum is statutory redundancy ........, your employer will pay it without deducting tax"

Any payment above statutory may be taxed.
 
Thanks for that redstar. He is getting above the statutory redundancy, the company call it an ex gratia payment.
How exactly is the statutory figure calculated. Can't find it properly laid out on revenue website.
 
I though that if you received redundancy tax free in the previous 10yrs then you could not avail of the tax exemption again untill outside that period. My father in similar situation.
 
The 10 yr rule only applies to ex-gratia payments. ie redundancy payment in addition to statutary.

Statutory is:
Two weeks pay for each year of service + one weeks pay (capped at 600)

This is tax-free.

The Basic tax-free exemption applies to ex-gratia amounts, and is;
10,165 + (Euro 765 x years service)

This ex-gratia amount is tax-free if it is equal to or less than the 'Basic Exemption'.
Any amount above the Basic exemption is taxed at your highest tax rate.

An additional tax-free exemption of 10,000 is available but only if;
- no previous tax-free lump sum received in the last 10 years
- If you have never received a tax-free lump sum and you are not getting a lump sum pension payment

You have to apply for this increased exemption from Revenue.

Useful link;
http://www.citizensinformation.ie/c...retirement/retirement_lump_sum_taxation#rules

Also, you should declare all redundancy amounts received in your 2009 tax return.
On 'Form 12', select 'Yes' to 'Top Slicing Relief' (as a refund may be available to you if the tax rate used to tax your redundancy is higher than your average tax rate over the last 3 years).
 
Anyone know how this works in terms of the exemptions:

I was made redundant back in 2004, received statutory and an ex-gratia payment

Ex-gratia was < basic exemption and so received it tax free.

Could be made redundant again this December. Due to the fact that I availed of the some of the exemption but not all, does that mean I cannot avail of it again, at all? plus cannot avail of the additional exemption either based on Redstar's info (which I see on the it21 leaflet. I am wondering (hoping), can I avail of the balance of the exemption I did not use up as part of first redundancy but it doesn't look like it.
 
My understanding is that you still get the basic exemption of €10,165 + €765 for year of service but you cannot claim the increase of another €10K as you have already received a redundancy lump sum within the last 10 years.
 
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