Following a consultation last summer, draft legislation for the changes that are due to be made to salary sacrifice schemes from 6 April 2017 have now been published. In recent years, HMRC has identified a growth in salary sacrifice schemes under which employees and employers agree to reduce salary in exchange for non-cash benefits in kind, and it has for a while been considering how the tax benefits available through these schemes can be limited.

The proposals the government made after the March 2016 Budget are due to proceed largely unchanged, although two amendments have been made that will be welcomed by various affected parties.