Section 326 — Income Tax (Earnings and Pensions) Act 2003: Expenses incidental to transfer of a kind not normally met by transferor

Expenses incidental to transfer of a kind not normally met by transferor 326 1 No liability to income tax arises by virtue of the payment or reimbursement of expenses which—

a are incidental to, and incurred wholly and exclusively as a result of, an employment-related asset transfer, and b are of a kind not normally met by the transferor.

2 There is an “employment-related asset transfer” if—

a an asset or the beneficial interest in an asset is transferred to an employee’s employer or a person nominated by the employer, and b the right or opportunity to make the transfer arose by reason of the employment.

3 In this section references to a transfer are to a sale or any other kind of disposal.