Tax relief for redundancy payments (repealed)
Tax relief for redundancy payments has been repealed.
Sections KC 6, OB 1 and OD 8(3) of the Income Tax Act 2004; subpart ML and sections YA 1 and YB 20 of the Income Tax Act 2007; and section 41B of the Tax Administration Act 1994
The Income Tax Act 2004, Income Tax Act 2007, and the Tax Administration Act 1994 were amended to provide a new rebate (renamed "tax credit" in the Income Tax Act 2007) for redundancy payments. The tax credit was a flat rate of six cents in the dollar, capped at the first $60,000 of redundancy payment in relation to each redundancy event.
The redundancy tax credit applied only to payments made in the period 1 December 2006 to 30 September 2011. There is no entitlement for payments made before or after this period.
The redundancy tax credit must have been claimed within four years from the date payment was received. The final date for making any claim was 30 September 2015.