BIM44307 - Specific deductions: Employee Share Schemes: Qualifying Shares: Host Employer
S1007A, S1015A, S1015B, S1025A, 1030A Corporation Tax Act 2009
From 6th April 2015, relief on the acquisition of shares may be given to an host employer and not the employing company where:
- An individual is awarded shares or options by reason of an employment with an overseas employing company, not within the charge to Corporation Tax; and
- as part of that employment, the individual works for (but is not employed by) a UK resident company (the ‘host employer’), for example on a secondment or similar arrangement and the host employer is within the charge to Corporation tax; and
- as a result of the work for the host employer, the individual is charged to income tax under ITEPA 2003 in respect of the acquisition of the shares.
The relief given in relation to the work done for the host employer is limited to the total amount of employment income charged to tax under ITEPA 2003, in respect of the acquisition of the shares.
Similar rules apply where an individual is granted options because of an employment with an overseas employing company, not within the charge to corporation tax and takes up an ‘UK employment, with a company within the charge to Corporation Tax, before exercising the option to acquire shares.