1007AApplication of Chapter in relation to employees of overseas companies who work for companies in the UK

1

This section applies if—

a

a person has an employment (“the actual employment”) with a non-UK resident company not within the charge to corporation tax (“the overseas employer”),

b

in performing any of the duties of the actual employment, the person works in the United Kingdom for, but is not employed by, another company (“the host employer”), and

c

the host employer is—

i

a UK resident company, or

ii

a non-UK resident company within the charge to corporation tax.

2

For the purposes of this Chapter, the person is to be treated as having an employment with the host employer (“the deemed employment”), the duties of which consist of the work the person does for the host employer.

3

Subsection (4) applies if—

a

shares (“relevant shares”) are acquired because of the actual employment, and

b

because of the work the person does for the host employer, an amount of employment income of the person is charged to tax under ITEPA 2003 in relation to the acquisition of the relevant shares.

4

For the purposes of section 1007(1)(c) (requirement that shares are acquired because of employment) the relevant shares are (regardless of when the acquisition takes place) to be treated, so far as would not otherwise be the case, as if they are acquired because of the deemed employment.

5

In section 1008 (conditions relating to the shares acquired) references to the employing company are to be read as including references to the overseas employer.

6

If, in relation to an acquisition of shares, the amount of relief would otherwise be more than the total amount of employment income of the person charged to tax under ITEPA 2003, the amount of relief is (notwithstanding any other provision of this Chapter) limited to the total amount of that income so charged.

7

If relief is available to more than one company in respect of the same acquisition of shares, relief may only be given to one of them in respect of that acquisition.

8

For the purposes of this section a person works for another person if the person provides, and is obliged to provide, personal service to the other person.