Corporation Tax Act 2009 section 1008

Conditions relating to shares acquired

Section 1008 sets out the conditions that shares must satisfy in order to qualify under the employee share acquisition rules, covering the type of shares, their listing status, and the relationship between the share-issuing company and the employing company.

• Qualifying shares must be ordinary shares that are fully paid up and not redeemable.
• The shares must either be listed on a recognised stock exchange, be in a company not controlled by another company, or be in a company controlled by a listed company.
• The shares must be in the employing company, its parent, or a company connected through a consortium arrangement that owns the employing company or its parent.
• Shares in a fellow consortium member or its parent can also qualify, provided that company belongs to the same commercial association of companies as the consortium-owned company.