Corporation Tax Act 2009 section 1020

Reduction in amount of relief

Section 1020 requires the amount of corporation tax relief for employee share acquisitions to be reduced where the employee's role relates partly to a qualifying business and partly to a non-qualifying business.

• This section applies when an employee's role covers both a qualifying business and a business (or part of a business) that does not qualify for relief under the scheme.
• Where the employment straddles qualifying and non-qualifying activities, the full amount of relief cannot be claimed.
• The relief must be reduced by a just and reasonable amount to reflect the dual nature of the employment.
• The legislation does not prescribe a fixed formula; instead, the reduction should be calculated on a fair and sensible basis appropriate to the circumstances.