Corporation Tax Act 2009 section 1013

How the relief is given

Section 1013 explains the mechanics of how corporation tax relief for employee share acquisitions is given, including the accounting period in which it applies and how the deduction is treated depending on the type of business carried on by the employing company.

• Relief is given in the accounting period in which the shares are acquired, as a deduction in calculating the profits of the qualifying business for corporation tax purposes.
• Where the employing company is a company with investment business, the relief is treated as expenses of management — unless the qualifying business is a property business, in which case the standard profits deduction applies instead.
• Where the employing company is subject to the I minus E rules and the relief is referable to its basic life assurance and general annuity business (BLAGAB), the relief is treated as ordinary BLAGAB management expenses for the relevant accounting period.
• Where the relevant employment relates to more than one qualifying business or part of a business, the relief must be apportioned on a just and reasonable basis.