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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If redundancy severance was paid in one single tax year does

Customer Question

If redundancy severance was paid in one single tax year does it reduce your personal allowance to zero if over £100K?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
.

Assuming the first £30,000 of your redundancy payment is tax free, the taxable balance will be included in the calculation of your adjusted net income purposes of the personal allowance.

Take a look here on adjusted net income. You lose £1 of the personal allowance £2 of taxable income over £100,000.

I hope this helps but let me know if you have any furthjer questions.