Corporation Tax Act 2009 section 1015A

Application of Chapter: employees of overseas companies who take up employment with a UK company

Section 1015A allows corporation tax relief to be available to a UK employer where an employee obtained share options through previous overseas employment and subsequently takes up UK employment.

• Where an employee moves from a non-UK company outside the charge to corporation tax to a UK company (or non-UK company within the charge to corporation tax), share options originally granted because of the overseas job are treated as if they were granted because of the UK employment
• Relief is only available if either employment income is charged to income tax under ITEPA 2003 because of the UK employment in relation to the share acquisition, or the share acquisition itself takes place because of the UK employment
• The amount of relief is capped at the total employment income actually charged to income tax under ITEPA 2003 in relation to the share acquisition, even if the relief would otherwise be higher
• Where more than one company could claim relief in respect of the same share acquisition under an option, only one company may receive it