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 £4,000 Non-statutory redundancy, ex gratia £20,000 Signing a non-disclosure/non-competition agreement £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.
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 £4,000 Non-statutory redundancy, ex gratia £20,000 Signing a non-disclosure/non-competition agreement £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.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 29CE
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