Part 4

Employment income: exemptions
Chapter 11

Miscellaneous exemptions

Employee shareholder agreements

Advice relating to proposed employee shareholder agreements
326B
1
No liability to income tax arises by virtue of—
a
the provision of relevant advice by a relevant independent adviser, or
b
the payment or reimbursement, in accordance with section 205A(7) of the Employment Rights Act 1996, of any reasonable costs incurred in obtaining relevant advice.
2
“
Relevant advice
” means—
a
advice, other than tax advice, which is provided for the purposes of section 205A(6)(a) of that Act (advice as to terms and effect of employee shareholder agreement), and
b
tax advice which is so provided and consists only of an explanation of the tax effects of employee shareholder agreements generally.
3
In this section—
- “
employee shareholder agreement
” means an agreement by virtue of which an employee is an employee shareholder (see section 205A(1)(a) to (d) of that Act);
- “
relevant independent adviser
” has the meaning that it has for the purposes of section 203(3)(c) of that Act.
S. 326B and cross-heading inserted (1.9.2013) by Finance Act 2013 (c. 29), Sch. 23 paras. 37, 38; S.I. 2013/1755, art. 2
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)