Corporation Tax Act 2009 (c. 4)

Part 12 U.K. Other relief for employee share acquisitions

Modifications etc. (not altering text)

C1 Pt. 12 applied by 2010 c. 8, s. 425(5) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))

Chapter 5 U.K. Additional relief in cases involving convertible securities

1031 Additional relief available if shares acquired are convertible shares etc U.K.

(1) Relief under this Chapter is available to the employing company if, after the acquisition of the acquired securities, a chargeable event (see section 1032) occurs in relation to those securities.

(2) Relief under this Chapter is also available to the employing company if the employee—

(a) is dead when that acquisition occurs, or

(b) dies after that acquisition.

(3) But relief resulting from subsection (2) does not become available until the occurrence of the first event (referred to in this Chapter as “the relief event”) occurring after the employee's death that would have been a chargeable event in relation to the acquired securities had the employee been alive.

(4) To find out what accounting period the relief is given for and how to calculate the amount of relief, see—

(a) section 1033 for relief available as a result of the occurrence of a chargeable event, and

(b) section 1034 for relief available as a result of the employee's death.

Those sections are supplemented by section 1035.

(5) Section 1036 provides for the relief to be given to a successor company if the qualifying business is transferred by group transfers.