Chancellor restricts 'most' salary sacrifice benefits in £1bn Autumn Statement raid

Jonathan Stapleton
clock • 4 min read

Chancellor Philip Hammond has restricted the tax-free benefits offered by salary sacrifice schemes - a move that is set to save the government more than £1bn by 2022.

The chancellor said the restrictions to the salary sacrifice regime would take effect from April 2017 - a move HM Treasury said would mean "most salary sacrifice schemes will be subject to the same tax as cash income". Although Hammond did not specify exactly what benefits would be included in the move, he said pensions, childcare vouchers, cycle to work schemes and ultra-low emission cars (those with CO2 emissions of up to 75g/km) would be exempted from these changes. In addition, he said that certain long-term arrangements would be protected until April 2021. Hammond said: "The g...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Employee Benefits

Unum UK pays out £516m in 2024

Unum UK pays out £516m in 2024

Group claims statistics

Cameron Roberts
clock 16 April 2025 • 2 min read
Half of businesses to extend AI use in benefits management

Half of businesses to extend AI use in benefits management

Towers Watson research findings

Jaskeet Briah
clock 14 April 2025 • 2 min read
Santé Group adds Nick Stone to distribution team

Santé Group adds Nick Stone to distribution team

Joins from Health Assured

Jaskeet Briah
clock 11 April 2025 • 1 min read