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Where Taxpayers and Advisers Meet

Interaction redundancy £30k and loss of personal allowance

Incredulum
Posts:2801
Joined:Thu Dec 03, 2009 5:35 pm
Interaction redundancy £30k and loss of personal allowance

Postby Incredulum » Thu Jan 22, 2026 2:42 pm

Hello A quick question please.

An individual earns £80k in the tax year and has no other income. Additionally they receive a £30k tax-free redundancy payment. Does this redundancy payment, by taking them over £100k, cause clawback of personal allowance?

Thanks

darthblingbling
Posts:786
Joined:Wed Aug 02, 2017 9:09 pm

Re: Interaction redundancy £30k and loss of personal allowance

Postby darthblingbling » Thu Jan 22, 2026 3:21 pm

No, only the taxable element of the redundancy payment will impact on the taper.

Incredulum
Posts:2801
Joined:Thu Dec 03, 2009 5:35 pm

Re: Interaction redundancy £30k and loss of personal allowance

Postby Incredulum » Thu Jan 22, 2026 3:45 pm

Thank you.


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