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

Jonathan Stapleton
Philip Hammond MP

Philip Hammond MP

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...

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