EIM44141 - Optional remuneration arrangements: particular issues – charitable giving

Section 203A ITEPA 2003

Employees sometimes enter into arrangements under which their employer makes a charitable donation matched by a similar amount under salary sacrifice. Under the arrangements, the employer may make a contribution to a charity named by the employee or to a charity of its own choosing. Whichever this might be, the employee is benefiting from ensuring that a charity will receive a donation as a result of their own salary sacrifice. The arrangements are therefore subject to the optional remuneration arrangement rules.