Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

124 Tax treatment of certain severance payments


This section imposes a charge to tax under Schedule E on certain termination allowances and severance allowances paid to outgoing members of the Oireachtas and to former holders of ministerial and parliamentary offices.


(1) The section applies to —

These allowances are treated as profits or gains arising from an office or employment and, accordingly, are chargeable to tax under Schedule E. The tax chargeable is computed in accordance with the Schedule E basis of assessment (see section 112(1)), and the allowances are treated as emoluments to which PAYE applies (see Chapter 4 of Part 42).

Relevant Date: Finance Act 2021