Section 326B | Advice relating to proposed employee shareholder agreements ^F1

(1)No liability to income tax arises by virtue of—^F1

(a)the provision of relevant advice by a relevant independent adviser, or^F1

(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.^F1

(2)“Relevant advice” means—^F1

(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^F1

(b)tax advice which is so provided and consists only of an explanation of the tax effects of employee shareholder agreements generally.^F1

(3)In this section—^F1

“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.