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Policy Paper Published 4 Dec 2025 HM Revenue & Customs ↗ View on GOV.UK

Salary sacrifice reform for pension contributions effective from 6 April 2029

This tax information and impact note is about changes to salary sacrifice for pension contributions.

▤ Verbatim text from source document

This measure removes the Optional Remuneration Arrangements excluded exemption for employer pension contributions for Class 1 National Insurance contributions, where salary sacrifice arrangements exceed an annual £2,000 cap.

This measure takes effect from 6 April 2029.