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Is an Employee whose employment is being terminated due to ill health allowed a tax free termination payment of €10160 plus €765 per year of service.
Note the employee is not being made redundant but their employment is being terminated as the employee can no perform their normal duties due to health problems.
Is the Tax Free termination payment of €10160 plus €765 per year of service allowed in this situation ?

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Posted by (Questions: 5, Answers: 0)
Asked on 5 July 2018 3:42 pm
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TCA 1997 s 201(2) (a) Income tax shall not be charged by virtue of section 123 in respect of the following payments:
(i) an amount not exceeding €200,000 of any payment made … on account of injury to or disability of the holder of an office or employment;
Yes, if the ill health constitutes a “disability” – otherwise, no.

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Posted by (Questions: 5, Answers: 4689)
Answered on 18 July 2018 2:59 pm