Section 1007 Basic requirements for relief under Chapter 2

United Kingdom

(1)

Relief under this Chapter is available to a company (“the employing company”) if—

(a)

a person (“the employee”) has employment with the employing company,

(b)

that employment (“the relevant employment”) is in relation to a business within subsection (2) (“the qualifying business”),

(c)

the employee or another person acquires shares because of the relevant employment,

(d)

the conditions set out in sections 1008 and 1009 are met as mentioned in those sections, and

(e)

relief under Chapter 3 is not available to the employing company in relation to the acquisition of the shares.

The person who acquires the shares is, in that capacity, called “the recipient”.

(2)

A business is within this subsection so far as—

(a)

the business is carried on by the employing company, and

(b)

the employing company is within the charge to corporation tax in relation to the profits of the business F1 or would be but for section 18A.

Annotations

F1: Words in s. 1007(2)(b) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 9, 31

C1: Pt. 12 applied by 2010 c. 8, s. 425(5) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))