203 Payments in respect of redundancy

Summary

This section provides for an exemption from income tax for payments made to qualifying individuals under the Redundancy Payment Act 1967.

The section exempts both statutory redundancy payments and payments made by the Department of Social Protection in accordance with section 32A of the Redundancy Payment Act 1967 (known as the Covid-Related Lay-Off Payment).

The exemption is respect of the Covid-Related Lay-Off Payment applies to payments made on or after 19 April 2022.

Details

(1)“lump sum” has the same meaning as in the Redundancy Payment Act 1967.

(2)Lump sum payments made under section 19 or 32 of the Redundancy Payments Act 1967 (statutory redundancy payment) are exempt from income tax.

(2)Payments made by the Department of Social Protection under section 32A of the Redundancy Payments Act 1967 (Covid-19 Related Lay-Off Payment) are exempt from income tax.

Relevant Date: Finance Act 2024