Corporation Tax Act 2009 section 1031

Additional relief available if shares acquired are convertible shares etc

Section 1031 sets out the circumstances in which additional corporation tax relief becomes available to an employing company when the shares acquired by or for an employee are convertible securities, and addresses what happens when the employee has died.

• Additional relief is available to the employing company when a chargeable event occurs after the employee acquires convertible securities.
• Relief is also available where the employee has died — either before or after the acquisition of the securities.
• Where the employee has died, the relief does not become available until the first event after death that would have been a chargeable event had the employee still been alive (known as "the relief event").
• If the qualifying business is transferred within a group, the relief may instead be given to the successor company.