Corporation Tax Act 2009 section 109

Shares acquired before 16 April 2003 that are subject to forfeiture

Section 109 denies corporation tax relief under Part 12 for shares acquired before 16 April 2003 where those shares are subject to forfeiture, and preserves the application of the original Finance Act 2003 rules for such shares.

• Shares acquired before 16 April 2003 that are subject to forfeiture cannot qualify for relief under Part 12 of the Corporation Tax Act 2009.
• Whether shares are "subject to forfeiture" is determined by reference to paragraph 19 of Schedule 23 to the Finance Act 2003 as originally enacted.
• Schedule 23 to the Finance Act 2003 continues to apply to these shares, even though that schedule has been repealed by the Corporation Tax Act 2009.
• This is a transitional provision ensuring that pre-existing forfeiture arrangements are dealt with under the old rules rather than the new regime.