The rules governing redundancy and termination payments are complex; care and attention is needed to ensure that the rules are complied with.
However, redundancy and termination payments can often present tax and pension funding opportunities that are easily overlooked when an employer or employee is only concerned with the complexities of the rules involved.
For instance;
- In certain circumstances the tax free lump sum available from a pension scheme need not restrict a tax free payment on termination as is commonly perceived.
- Media reports indicate that significant changes in this area are expected with the imminent publication of the report by the Commission on Taxation. Early planning now could provide substantial tax saving opportunities.
For advice and guidance on opportunities in this complex area contact us.
Grant Thornton Financial Counselling Limited is the Financial Planning arm of the Grant Thornton practice in Ireland and has offices in Dublin and in Limerick.
Grant Thornton Financial Counselling Limited is regulated by The Central Bank of Ireland. Registered office: 24-26 City Quay, Dublin 2. Company registration no. 102489.
Grant Thornton is authorised by The Institute of Chartered Accountants in Ireland to conduct investment business under the Investment Intermediaries Act 1995.