3.2) Early in February 2022 Vera was told that she would be made redundant, this happened on 6 April 2022. The severance package that she received in 2022/23 was: Statutory redundancy Non-statutory redundancy, ex gratia Signing a non-disclosure/non-competition agreement £4,000 £20,000 £10,000
3.2) Early in February 2022 Vera was told that she would be made redundant, this happened on 6 April 2022. The severance package that she received in 2022/23 was: Statutory redundancy Non-statutory redundancy, ex gratia Signing a non-disclosure/non-competition agreement £4,000 £20,000 £10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![3.2) Early in February 2022 Vera was told that she would be made redundant, this
happened on 6 April 2022. The severance package that she received in 2022/23 was:
Statutory redundancy
Non-statutory redundancy, ex gratia
Signing a non-disclosure/non-competition
agreement
£4,000
£20,000
£10,000
Required: Outline the tax treatment of the redundancy package and explain how the tax
liability on the redundancy package could have been reduced if the £34,000 has been split
differently.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50fb1726-db88-418e-95d9-63a9b23a7ce3%2F466cc959-b087-4cae-a53a-00a5d1e1a370%2F86yzuqv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3.2) Early in February 2022 Vera was told that she would be made redundant, this
happened on 6 April 2022. The severance package that she received in 2022/23 was:
Statutory redundancy
Non-statutory redundancy, ex gratia
Signing a non-disclosure/non-competition
agreement
£4,000
£20,000
£10,000
Required: Outline the tax treatment of the redundancy package and explain how the tax
liability on the redundancy package could have been reduced if the £34,000 has been split
differently.
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