Income Tax (Earnings and Pensions) Act 2003 section 308B

Independent advice in respect of conversions and transfers of pension scheme benefits

Section 308B provides an income tax exemption for independent advice given to employees or former employees about converting or transferring their pension scheme benefits, provided three conditions are met.

• The advice (or payment/reimbursement of its cost) must be required by regulations under the Pension Schemes Act 2015 that oblige employers to arrange independent advice on pension conversions and transfers — if the amount paid exceeds what the regulations require, only the required portion is tax-exempt
• The advice must not be provided through a salary sacrifice arrangement, where the employee gives up earnings or employment income in return for the advice or its cost
• Any additional requirements set out in Treasury regulations must also be satisfied
• What counts as "appropriate independent advice" is defined by separate regulations under the Pension Schemes Act 2015 — one set for England, Wales and Scotland, and another for Northern Ireland

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