Section 62 ITEPA 2003

This is an example of an unsuccessful salary sacrifice and its Income Tax effects. See also EIM42790.

For an example of a salary sacrifice that is successful, see EIM42785.

For information on salary sacrifice generally, see EIM42750 onwards.

Example of unsuccessful salary sacrifice

A company employs 20 people. There is a registered pension scheme for the employees. The scheme is run by an insurance company. Each employee has the option of joining the scheme and also of deciding the amount of his or her monthly pension contribution. The employee's contributions could be made to the pension scheme by:

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