C1Part 12Other relief for employee share acquisitions
Chapter 3Relief if employee or other person obtains option to acquire shares
Requirements to be met for relief to be available
1015BF1Application of Chapter in relation to employees of overseas companies who work for companies in the UK
1
This section applies if—
a
a person has an employment (“the actual employment”) with a non-UK resident company not within the charge to corporation tax (“the overseas employer”),
b
in performing any of the duties of the actual employment, the person works in the United Kingdom for, but is not employed by, another company (“the host employer”), and
c
the host employer is—
i
a UK resident company, or
ii
a non-UK resident company within the charge to corporation tax.
2
For the purposes of this Chapter, the person is to be treated as having an employment (“the deemed employment”) with the host employer, the duties of which consist of the work the person does for the host employer.
3
Subsection (4) applies if—
a
an option to acquire shares (“the relevant option”) is obtained because of the actual employment,
b
shares are acquired pursuant to the relevant option, and
c
because of the work the person does for the host employer, an amount of employment income of the person is charged to tax under ITEPA 2003 in relation to the acquisition of the shares.
4
For the purposes of section 1015(1)(c) (requirement that option is obtained because of employment), the relevant option is (regardless of when it is obtained) to be treated, so far as would not otherwise be the case, as if it is obtained because of the deemed employment.
5
In section 1016 (conditions relating to the shares acquired) references to the employing company are to be read as including references to the overseas employer.
6
If, in relation to an acquisition of shares pursuant to an option, the amount of relief would otherwise be more than the total amount of employment income of the person charged to tax under ITEPA 2003, the amount of relief is (notwithstanding any other provision of this Chapter) limited to the total amount of that income so charged.
7
If relief is available to more than one company in respect of the same acquisition of shares pursuant to an option, relief may only be given to one of them in respect of that acquisition.
8
For the purposes of this section a person works for another person if the person provides, and is obliged to provide, personal service to the other person.
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))