Corporation Tax Act 2009

Part 14 Other relief for employee share acquisitions

Accounting periods beginning before 1 January 2003

107 (1) Relief is not available under Part 12 in relation to shares acquired so far as a deduction is available or has been made in relation to relevant expenses in calculating the chargeable profits of the employing company or any other company for corporation tax purposes for an accounting period beginning before 1 January 2003.

(2) “Relevant expenses” means any expenses referable, directly or indirectly, to the provision of the shares acquired.

Restricted shares not to include shares acquired before 16 April 2003

108 In Part 12 “restricted shares” does not include shares acquired before 16 April 2003.

Shares acquired before 16 April 2003 that are subject to forfeiture

109 (1) Relief under Part 12 is not available in relation to shares acquired before 16 April 2003 that are subject to forfeiture.

(2) “Subject to forfeiture” is to be read in accordance with paragraph 19 of Schedule 23 to FA 2003 as originally enacted.

(3) Accordingly, Schedule 23 to FA 2003 continues to apply in relation to such shares (despite the repeal by this Act of that Schedule or of any provision modifying, or affecting the application of, that Schedule).

Meaning of “employment” for times before 16 April 2003

110 In relation to any time before 16 April 2003, Part 12 applies as if section 1002(2) were omitted.

Relief under Chapters 4 and 5 of Part 12

111 (1) This paragraph applies for the purposes of Chapters 4 and 5 of Part 12 in their application in relation to shares or other securities acquired during an accounting period that ends before 1 April 2009.

(2) In accordance with Part 1 of this Schedule (continuity of law), references to relief under Chapter 2 or 3 of Part 12 are to be read as references to relief under Schedule 23 to FA 2003 (as that Schedule applied when the shares or other securities were acquired) available on the acquisition.