Corporation Tax Act 2009 section 1016

Conditions relating to shares acquired

Section 1016 sets out the conditions that must be satisfied by shares acquired under an option in order for corporation tax relief to be available under the employee share acquisition provisions.

• The shares must be ordinary shares that are fully paid up and not redeemable
• The shares must be listed on a recognised stock exchange, or be in a company that is either independent or controlled by a listed company, with a 90-day grace period following a takeover
• The shares must be in the employing company, its parent, a consortium member that owns the employing company or its parent, or a qualifying successor company
• Where a consortium structure exists, shares in a company that is both a consortium member (or parent of one) and part of the same commercial association of companies may also qualify