Taxes Consolidation Act 1997 section 203

Payments in respect of redundancy

Section 203 exempts statutory redundancy payments and Covid-19 related lay-off payments from income tax.

• Statutory redundancy lump sum payments made under the Redundancy Payments Act 1967 are fully exempt from income tax.
• The term "lump sum" carries the same meaning as defined in the Redundancy Payments Act 1967.
• Covid-19 Related Lay-Off Payments made by the Department of Social Protection are also exempt from income tax.
• The exemption covers both standard redundancy payments under sections 19 and 32, and Covid-related payments under section 32A of the 1967 Act.