Retraining costs exemption in a redundancy package (ended 1 May 2021)
Note
This concessionary measure ceased to apply on 1 May 2021.
From 2 May 2021, the individual must complete retraining within the usual six month timeframe to avail of this exemption.
The cost of retraining an employee as part of a redundancy package is usually exempt from Income Tax if the training:
- costs less than €5,000
- and
- is completed within six months of the termination of employment.
Revenue are willing to extend the six month timeframe if the retraining cannot be completed due to COVID-19 restrictions. The retraining must take place within six months of the required course becoming available following the end of COVID-19 restrictions.