Vol. 490 No. 2
36 Mr. Stagg asked the Minister for Finance if he will initiate measures designed to encourage people made redundant to pay off their mortgages with their redundancy payment and to have such money used in this way regarded as tax-free. [9534/98]
The tax system already provides for generous reliefs for redundancy lump sum payments. There is a basic exemption from income tax in respect of the first £6,000 with an additional £500 for each complete year of service. The Deputy will also be aware of the relief allowed to homeowners in respect of mortgage interest. A decision on whether to use redundancy payments to pay off a mortgage is a matter for each individual depending on circumstances. I have no proposals to alter the tax treatment of redundancy payments along the lines suggested in the Deputy's question.
