SCHEDULES
SCHEDULE 23Employee shareholder shares
PART 4Employment income exemption
37
In Chapter 11 of Part 4 of ITEPA (employment income: miscellaneous exemptions), after section 326A insert—
Employee shareholder agreements
326BAdvice relating to proposed employee shareholder agreements
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.