£30k Redundancy Tax Free Allowance

Should the £30k tax free portion be included within taxable income? eg If Redundancy was £35k and all other Income to that point was £70k, -> A. is the taxable income £105k (70k+35k) where it is all included? -> B. is the taxable income £75k (70k+5k) where the £30k tax free portion has been ignored? Situation B would mean the person would still be eligible for tax free childcare as thier taxable income is under £100k?

Hi,
You would not include the tax free portion to calculate the adjusted net income.
Personal Allowances: adjusted net income
Thank you