Welcome but with some caveats. Alison Hughes and Lorna Jordan (KPMG) review HMRC’s new guidance on this issue.
In many cases where an employee acquires shares under an ‘option’ statutory corporation tax relief under CTA 2009 Part 12 (Part 12) is available for the employer in respect of the gain (i.e. the difference between the market value of the shares when they are acquired and any acquisition price paid) provided certain conditions are met.
For these purposes an ‘option’ includes any right to acquire shares (CTA 2009 s 1005). Therefore depending on the specific terms of the relevant share plan awards that are described for example as restricted stock units (RSUs) deferred share bonuses or long-term incentive plan (LTIP) awards – as well as ‘conventional’ market value employee share options – could be ‘options’.
Where the conditions for corporation tax...
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Welcome but with some caveats. Alison Hughes and Lorna Jordan (KPMG) review HMRC’s new guidance on this issue.
In many cases where an employee acquires shares under an ‘option’ statutory corporation tax relief under CTA 2009 Part 12 (Part 12) is available for the employer in respect of the gain (i.e. the difference between the market value of the shares when they are acquired and any acquisition price paid) provided certain conditions are met.
For these purposes an ‘option’ includes any right to acquire shares (CTA 2009 s 1005). Therefore depending on the specific terms of the relevant share plan awards that are described for example as restricted stock units (RSUs) deferred share bonuses or long-term incentive plan (LTIP) awards – as well as ‘conventional’ market value employee share options – could be ‘options’.
Where the conditions for corporation tax...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
