Lump Sum on account of Injury / Disability
27/01/1994
Query
Does the exemption in S 201(2)(a) TCA 1997 apply to a payment made in connection with the termination of an office or employment where the individual suffers from an injury or disability
Decision
To qualify for relief, the payment must be made on account of injury or disability of the holder of the office or employment and the disability must cause the termination. Where the payment is made on account of the termination of the office or employment, it does not qualify for exemption under S201(2)(a) TCA 1997, unless the termination is due to injury or disability.
Income Tax
Section 201, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT 94 1509