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.

Answer rating: 100% (QA)

The tax treatment of the redundancy package depends on the specific tax laws and regulations of the country in question Since you havent specified the ... View the full answer