Corporation Tax Act 2009 section 1030

Application of Chapter

Section 1030 sets out when Chapter 5 (which deals with convertible shares and securities) applies, including situations involving convertible shares eligible for relief, convertible securities that are not shares, and special cases such as the death of the recipient or a company takeover.

• Chapter 5 applies where relief under Chapter 2 or 3 is available for acquiring convertible shares, or would have been available for convertible securities that are not shares but for those securities failing to meet the share conditions in section 1008 or 1016
• The chapter still applies even if the amount of relief works out as nil
• If the original option recipient has died and someone else acquires the securities, Chapter 5 treats the securities as if the original recipient were still alive and had acquired them
• If a company takeover has led to options being exchanged for options in a new company, Chapter 5 treats the acquired securities as if they were acquired under the original qualifying option