Section 326B — Income Tax (Earnings and Pensions) Act 2003: Advice relating to proposed 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.