Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Each year, rumours swirl that pension tax reform is on the horizon. Prior to the 2024 Autumn Budget, there were speculated changes to tax relief, including the removal or limitation of tax-free cash lump sums and the National Insurance exemption on employer pension contributions. This year, the government responded to what it describes as a looming fiscal gap by enacting the much-rumoured cap on salary sacrifice pension contributions, turning speculation into reality. While expected to generate revenue of £4.8bn in 2029/30, and £2.6bn in 2030/31, the changes come at a time when the am...