OPRA will lead to 'significant' employee benefit changes

clock • 2 min read

Aon Employee Benefits has said that tax advantages removed with new Optional Remuneration Arrangement (OPRA) rules, mean both employers and employees will need to be ready for tax charges.

The tax changes impact two flexible benefit arrangements, group life assurance and group income protection. The changes will apply from 6 April 2018 at the latest as part of salary sacrifice changes in the Finance Act 2017. Aon says that the way employers provide life cover to employees is also in the spotlight. Cover on a ‘registered' and ‘excepted' basis is now treated differently for Benefit in Kind (BIK) purposes. Given the rising popularity of excepted arrangements, there is significant additional complication for employers, Aon said.  Polls from a number of Aon events d...

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