Revenue has updated its Tax and Duty Manual at paragraph 5.5 to provide clarification on the income to be included when calculating the increased tax exemption known as the Standard Capital Superannuation Benefit (SCSB) for individuals in receipt of termination lump sum payments.

Under Paragraph 6 of Schedule 3 TCA 1997 the SCSB provides a tax exemption additional to the basic exemption based on the average remuneration over the past 36 months among other factors. Revenue has now clarified that taxable emoluments should not exclude tax exempt remuneration. Examples of tax exempt remuneration include the travel pass scheme and contributions to pension schemes.