Corporation Tax Act 2009 section 1025A

Application of Chapter: employees of overseas companies who take up employment with, or work for, a UK company

Section 1025A provides additional corporation tax relief to UK companies when employees who were originally employed overseas by a non-UK company, and who acquired restricted shares through that overseas employment, subsequently take up employment with or work for a UK company and a chargeable event occurs in relation to those restricted shares.

• Where an employee acquired restricted shares through overseas employment with a non-UK company, and later works for or is employed by a UK company, the UK company may claim additional relief under Chapter 4 when a chargeable event occurs on those restricted shares
• The relief is only available if the employee's income from the chargeable event is actually charged to UK income tax under ITEPA 2003 because of the UK employment, and the amount of relief is capped at the total employment income so charged
• A "UK employment" includes both direct employment by the UK company and situations where the employee remains employed overseas but provides personal service to the UK company, such as on secondment
• If more than one company could claim relief in respect of the same chargeable event, only one of those companies may actually receive the relief