Corporation Tax Act 2009 section 1028

Supplementary provision for purposes of sections 1026 and 1027

Section 1028 explains how relief under this Chapter is given in practice, and confirms that any reduction rules that applied to the original relief also apply to the replacement relief.

• If the original employee share acquisition relief was subject to a reduction under the rules for direct share acquisitions (Chapter 2) or share option acquisitions (Chapter 3), those same reduction rules carry across and apply equally to the relief given under this Chapter.
• Where the original relief arose under Chapter 2 (shares acquired by an employee or other person), the mechanics for giving the replacement relief follow the same procedural steps used for Chapter 2 relief.
• Where the original relief arose under Chapter 3 (employee or other person obtains an option to acquire shares), the mechanics for giving the replacement relief follow the same procedural steps used for Chapter 3 relief.
• In essence, this section ensures consistency: the replacement relief mirrors the treatment of the original relief in terms of both any required reductions and the method by which it is given.