Sections 62 and 308 ITEPA 2003

This is an example of a successful salary sacrifice and its income tax effects.

For an example of a salary sacrifice that is not successful see EIM42786 and EIM42790.

For information on salary sacrifice generally see EIM42750 onwards.

Example of successful salary sacrifice

A senior employee, who is not a director, is contractually entitled to a bonus each year. The amount of the bonus is based on the profits of the employing company.

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