TAX-FREE THRESHOLD FOR REDUNDANCY PAY

Motion Text

That this House calls on the Government to undertake an immediate review of the tax-free threshold for redundancy pay which has remained fixed at £30,000 since 1989; notes that increasing the threshold to £50,000 as recommended by the TUC would bring it up to the level it would have been had it been up-rated in line with inflation since 1989; and further notes that many people currently required to pay tax on their redundancy payments are older employees who have been with the same employer for a substantial period of time and may need to pay for retraining in addition to their everyday costs before they are able to find new employment.