Corporation Tax Act 2009 section 1030A

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

Section 1030A provides additional corporation tax relief to UK companies when an employee who originally received convertible securities from an overseas employer subsequently takes up employment with, or works for, a UK company, and a chargeable event occurs in relation to those securities.

• Where an employee acquired convertible securities through employment with a non-UK resident company and later moves to a UK company, the UK company may claim additional relief under Chapter 5 when a chargeable event occurs on those securities
• Relief is only available if the employee's UK employment relates to a qualifying business (one whose profits are or would be within the charge to corporation tax), and an amount of employment income is actually charged to income tax under ITEPA 2003 because of that UK employment
• The relief available to the UK company is capped at the total amount of the employee's employment income that is charged to income tax in relation to the chargeable event
• If more than one company could claim relief as a result of the same chargeable event, only one of them may actually receive the relief