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Tax on redundancy package
owly1
Posts: 23 Forumite
Ok so colleague is happy to leave with big package to retire Early and is delighted taper allowance is moved to higher level (so no longer a problem of pension contribution limitation).
so to reduce tax on the severance pot, part is put in pension to 40k (and first 30k redundancy cash "is tax free)
- but lots of tax still to pay on the rest !
Cant put any more than 40k in pension (no remaining carry over)
is there anything legal that can be done to reduce tax on the remainder (after the tax free 30 and 40k pension is allocated)
maybe nice problem to have but nobody expects to retire into confinement !
so to reduce tax on the severance pot, part is put in pension to 40k (and first 30k redundancy cash "is tax free)
- but lots of tax still to pay on the rest !
Cant put any more than 40k in pension (no remaining carry over)
is there anything legal that can be done to reduce tax on the remainder (after the tax free 30 and 40k pension is allocated)
maybe nice problem to have but nobody expects to retire into confinement !
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