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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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.
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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