Corporation Tax Act 2009 section 1033

Relief available on occurrence of chargeable event

Section 1033 sets out the amount and timing of corporation tax relief that an employer company can claim when a chargeable event occurs in relation to convertible securities 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 convertible securities
• Any relief the employee receives for secondary Class 1 National Insurance contributions they have borne is excluded from the calculation
• Adjustments for securities with artificially depressed market values are also excluded when calculating the relief amount