Corporation Tax Act 2009 section 18E

Employee share acquisitions

Section 18E explains how corporation tax relief for employee share acquisitions is allocated to an exempt foreign permanent establishment when calculating its relevant profits or losses.

• Relief for employee share acquisitions under Part 12 (Chapters 2 or 3) must be factored into the calculation of relevant profits or relevant losses of a foreign permanent establishment
• The relief is only included to the extent it is linked to the business carried on through the permanent establishment in the relevant foreign territory
• The degree to which the relief is linked to the foreign permanent establishment is determined on a just and reasonable basis
• The key factor in assessing the link is the extent to which the work of the employees in question contributes to the purposes of the business carried on through that permanent establishment