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Optional remuneration arrangements

04 July 2017 / Steve Talbot
Issue: 4606 / Categories: Comment & Analysis

Can’t see the wood…


  • The new name for salary sacrifice arrangements is optional remuneration arrangements.
  • There are exclusions from the new rules which are not straight forward.
  • If caught the amount taxable is the higher of the salary sacrificed or the value of the benefit in kind received.
  • Ambiguities remain over the ‘higher of’ calculation in some circumstances.
  • The transitional rules can continue until 2021 for some benefits.

The new optional remuneration arrangement (OpRA) legislation was introduced by FA 2017 Sch 2 as HMRC’s latest attempt to combat the ever-increasing popularity of salary sacrifice and the impact the department considered it was having on the Treasury’s revenues.

There have already been legislative changes to exclude benefits that could qualify for a tax exemption if they were offered through salary sacrifice. This was...

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