Corporation Tax Act 2009 section 1029

Transfer of qualifying business by group transfers

Section 1029 deals with how corporation tax relief under Chapter 4 (additional relief for restricted shares) is redirected to a successor company when the qualifying business is transferred within a group during the period between the share acquisition (or option grant) and the chargeable event (or the employee's death).

• Where substantially the whole qualifying business is transferred within a group during the interim period, the corporation tax relief is given to the successor company instead of the original employing company.
• All transfers must be group transfers, and by the end of the interim period the business must be carried on by one or more companies other than the original employing company.
• If more than one successor company ends up carrying on the business, the successor companies must nominate which one of them will receive the relief.
• The interim period runs from the date the restricted shares were acquired (or the option was obtained) until a chargeable event occurs or the employee dies.