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Redundancy - ExGratia Tax Query

Sparky1972 · 2024-02-22 12:53:09

Query on Redundancy ExGratia and Tax with < 2yrs Service and ExGratia of 25K. My understanding is that with the increased exemption applied then 20,925 is Tax Free (10,160 + 765 + 10,000). i.e 4,075 (25K - 20,925) is the taxable amount. Is this correct? How will this potentially impact any retirement tax free pension lump…

22-02-2024 1:53pm

#1

Sparky1972

Registered Users Posts: 40 ✭

Join Date: January 2008

Posts: 15

Query on Redundancy ExGratia and Tax with
< 2yrs Service and ExGratia of 25K.
My understanding is that with the increased exemption applied then 20,925 is Tax Free (10,160 + 765 + 10,000).
i.e 4,075 (25K - 20,925) is the taxable amount.
Is this correct?
How will this potentially impact any retirement tax free pension lump sum in the future from any Company pension schemes (Retirement is well over a decade away).
I would imagine with the short period of service, the best option to take here is go for the increased exemption that I have outline above?
Appreciate any feedback/comment

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