§ Mr. George Gardinerasked the Chancellor of the Exchequer what is the present level above which redundancy payments are subject to tax; when it was fixed; what the percentage rate of inflation has been since that date; and 785W whether he will consider raising the level by this percentage figure.
§ Mr. Robert SheldonPayments in connection with the termination of an employment—including redundancy payments—are taxable under Section 187 of the Taxes Act 1970 to the extent that they exceed £5,000, though the maximum amount payable under the Redundancy Payments Act is at present £2,400. The level of £5,000 was fixed in 1960 and I keep it under review. The increase in the average level of prices from 1960 to January 1976 was 201 per cent.