Corporation Tax Act 2009 section 1037

Priority of Chapter 1 of Part 11

Section 1037 establishes that tax relief available for Share Incentive Plans takes priority over the relief available under Part 12 of the Act for other employee share acquisitions.

• Deductions available for Share Incentive Plans (SIPs) always take priority over deductions available under Part 12 of the Act
• If a deduction is allowable or has already been claimed for shares under the SIP rules, no further relief can be claimed for those same shares under Part 12
• This prevents a company from obtaining double relief by claiming deductions under both sets of provisions for the same shares
• The rule applies regardless of whether the SIP deduction has actually been taken or is merely available to be taken