Part 3: Corporation Tax
50.Part 3 of the Schedule amends the Corporation Tax Act 2009 (CTA 2009). It provides that for various purposes relating to corporation tax, any £2,000 payment deemed to have been made by an employee shareholder under new section 226B of ITEPA is to be disregarded.
51.Paragraphs 22 to 32 and paragraph 36 amend various provisions of CTA 2009 to take account of employee shareholder shares, and ensure that, where appropriate for the purposes of these provisions, any amounts treated as earnings under new section 226A of ITEPA are treated in the same way as other earnings. When read with new section 1038B of CTA 2009, these paragraphs also provide that any £2,000 payment deemed to have been made by an employee shareholder under new section 226B of ITEPA is disregarded when determining the amount of relief available to a company in relation to the employee shareholder’s acquisition of shares.
52.Paragraph 33 introduces new section 1038B of CTA 2009 (employee shareholder shares), which provides that any £2,000 payment deemed to have been made by an employee shareholder under new section 226B of ITEPA is disregarded for various purposes of Part 12 CTA 2009 affecting the availability of relief, or the amount of any relief available to a company.
53.Paragraphs 34 and 35 amend sections 1292 and 1293 of CTA 2009 (in relation to ‘qualifying benefits’) to provide that where a corporation tax deduction in relation to employee shareholder shares is subject to conditions set out in these sections, any £2,000 payment deemed to have been made by an employee shareholder under new section 226B of ITEPA is disregarded for various purposes affecting the availability of deductions, or the amount of any deduction available to a company.
54.Paragraph 36 provides information relation to the definition of ‘employee shareholder share’.
