Part 12Other relief for employee share acquisitions
Chapter 3Relief if employee or other person obtains option to acquire shares
Giving of relief
1021How the relief is given
(1)
The relief is given for the accounting period in which the shares are acquired.
(2)
The amount of relief is allowed as a deduction in calculating the profits of the qualifying business for corporation tax purposes (subject to subsections (3) and (4)).
(3)
If the employing company is a company with investment business (as defined in F1section 1218B ), the amount of relief is treated as expenses of management of the company.
But this subsection does not apply if the qualifying business is a property business (in which case subsection (2) applies instead).
F2(4)
If—
(a)
the employing company is a company in relation to which the I - E rules apply, and
(b)
the relief is referable, in accordance with Chapter 4 of Part 2 of FA 2012, to the employing company's basic life assurance and general annuity business,
the amount of relief is treated for the purposes of section 76 of that Act as ordinary BLAGAB management expenses of the company referable to the accounting period.
(5)
If the relevant employment is in relation to more than one business (or part of a business) within section 1015(2), the relief is to be apportioned on a just and reasonable basis.