Section 1015 Basic requirements for relief under Chapter 3

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 obtains an option to acquire shares because of the relevant employment,

(d)

the person who obtains the option acquires shares pursuant to the option, and

(e)

the conditions set out in sections 1016 and 1017 are met as mentioned in those sections.

The person who obtains the option 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.

(3)

If—

(a)

the recipient dies, and

(b)

subsequently another person acquires shares pursuant to the option,

this Chapter applies as if the recipient were alive and the shares were acquired by the recipient.

Annotations

F1: Words in s. 1015(2)(b) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 10, 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))