Corporation Tax Act 2009 section 1034

Relief available following death of employee

Section 1034 sets out how corporation tax relief is calculated and when it is given where a relief event involving convertible securities occurs after the death of an employee.

• This section applies where corporation tax relief becomes available as a result of an employee's death in connection with convertible securities.
• Relief is given for the accounting period in which the relief event occurs, not the period in which the employee dies.
• The amount of the relief equals the amount that would have counted as employment income of the employee had they still been alive, calculated under the ITEPA 2003 rules for chargeable events on convertible securities.
• Certain ITEPA 2003 adjustments relating to artificially depressed market values are disregarded when calculating the relief amount.