Corporation Tax Act 2009 section 1026

Relief available on occurrence of chargeable event

Section 1026 sets out the corporation tax relief a company can claim when a chargeable event occurs in relation to conditional interests in shares held by an employee.

• Relief is given in the accounting period in which the chargeable event occurs
• The amount of relief equals the amount that counts as employment income of the employee under the income tax rules for the chargeable event
• Certain employee-level reliefs and adjustments are ignored when calculating the company's relief, so the company claims the gross amount
• Any non-commercial increase in the market value of restricted shares after acquisition is excluded from the relief calculation