Corporation Tax Act 2009 section 1014

Overview of Chapter

Section 1014 provides an overview of Chapter 3, which deals with corporation tax relief where an employee (or another person) obtains an option to acquire shares by reason of employment and subsequently exercises that option.

• Relief is available when a share option is granted in connection with employment and the shares are actually acquired under that option.
• Specific requirements must be met before relief can be claimed, and the legislation sets out how the amount of relief is calculated and how it is given.
• Special rules apply where the company whose shares are subject to the option is subsequently taken over by another company.
• Where a qualifying business is transferred within a group, relief may be given to the successor company instead.