View more on these topics

Treasury shelves salary sacrifice crackdown over Brexit fears


The Treasury will postpone plans to crack down on salary sacrifice arrangements until after the referendum on EU membership, Money Marketing understands.

In the March Budget the Government dropped controversial reforms that would have redrawn the pension tax relief system.

But it said it would consult on restricting the workplace benefits that attract National Insurance Contribution relief.

However, a senior source at a provider says Treasury officials have indicated no action will be taken until after the June vote.

The Budget document revealed that the schemes, which limit National Insurance have increased in number by over 30 per cent since 2010.

The source says: “I don’t understand why salary sacrifice has to be shelved, it is nothing like as politically toxic as pension tax relief reform.”

But Tisa policy strategy director Adrian Boulding says: “Salary sacrifice plans were part of the whole mix of whether we reform pension tax relief. The official answer was there was no consensus but the reality is George Osborne is focused on the EU referendum. The last thing he would want is people voting to leave the EU because they saw it as a vote against him and his plans for pensions.”

The Budget document said: “The Government is considering limiting the range of benefits that attract income tax and NICs advantages when they are provided as part of salary sacrifice schemes.

“However, the Government’s intention is that pension saving, childcare and health-related benefits such as cycle to work should continue to benefit from income tax and NICs relief when provided through salary sacrifice arrangements.”



Govt extends secondary annuity market to final salary schemes

The Government has widened the scope of its plans to let pensioners cash in their annuities to some members of defined benefit schemes. An HMRC consultation published today reveals final salary schemes that have purchased annuities as an asset will be able to assign them to individual members who in turn can sell them on. […]


Govt closes in on salary sacrifice cap

The Government is considering capping the savings employees and employers make through salary sacrifice schemes as part of a crackdown on arrangements that limit tax. The Budget documents reveal the Government will consult on limiting “the range of benefits that attract income tax and National Insurance Contributions advantage when they are provided as part of […]


Does pension tax relief U-turn pave the way for salary sacrifice reform?

Abandoned plans for reforming pension tax relief could push the Chancellor towards cracking down on salary sacrifice in tomorrow’s Budget. At the last Budget, in July 2015, the Government said it would “actively monitor” the growth of schemes, which allow firms and employees to reduce their National Insurance bills, as the “cost to the taxpayer […]

US loan growth is not painting a pretty picture for the US economy

Written by Mike Riddell One of the current big debates in global financial markets is whether investors should believe ‘hard’ rather than ‘soft’ data, where the usually reliable business and consumer surveys have been suggesting strengthening in global growth momentum for some time now, while the economic data that feeds through into the Gross Domestic […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. They seem absolutely determined to trash pensions. Just wating till after the Referendum, when whatever the result this Govt will find itself in bad odure, so they won’t really care who they upset then, judging that they’ll have a couple of years before a general election to polish their offering. This is the much vaunted democracy and soverignty that everyone is bleating about.

  2. If salary sacrifice is abolished, presumably, Defined Benefit Scheme contributions like Osborn’s 1/40th accrual MP’s pension scheme will then be deducted net from net like everyone else – we wish. Remember we are all in this together

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm