Corporation Tax Act 2009 section 1007

Basic requirements for relief under Chapter 2

Section 1007 sets out the basic conditions that must be satisfied before a company can claim corporation tax relief under Chapter 2 in respect of shares acquired by or for an employee.

• The company must employ the individual in connection with a business it carries on and on whose profits it is within the charge to corporation tax.
• Shares must be acquired by the employee, or by another person, because of that employment — the person who acquires the shares is referred to as "the recipient".
• Additional conditions relating to the shares themselves and the employee's income tax position (set out in sections 1008 and 1009) must also be met.
• Relief under Chapter 2 is not available if relief under Chapter 3 is available to the employing company in relation to the same share acquisition.