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 Can I avoid tax on redundancy payment?

Q A significant amount of my redundancy will be taxed at 40%. Is there any legal way that l can eliminate such tax payments?

PG

A The only way that you might be able to reduce the tax liability is to see whether some, or all the surplus, over ?30,000 can be used to top up your contributions to your company pension scheme. It's worth asking your employers whether the scope for additional pension contributions have been fully utilised or not.

Otherwise l am afraid there is not a lot you can do, but grin and bear it.


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