Salary sacrifice cap of £2,000 to be introduced in 2029
NeutralFinancial Markets

- The UK government has announced that a salary sacrifice cap of £2,000 will be introduced in 2029, affecting the way basic rate taxpayers can manage their taxable income. This change is expected to impact only a small percentage of those currently utilizing salary sacrifice schemes, as 74% of basic rate taxpayers will remain unaffected.
- This development is significant as it reflects the government's ongoing efforts to regulate tax practices and ensure fair contributions from taxpayers. The introduction of the cap may influence financial planning for many individuals and businesses that rely on salary sacrifice arrangements.
- The announcement comes amid discussions of potential tax increases in the upcoming budget, as indicated by Shadow Chancellor Rachel Reeves. This broader context highlights the government's approach to addressing economic challenges and funding public services, suggesting a shift in fiscal policy that could affect various sectors and taxpayers.
— via World Pulse Now AI Editorial System

