NIM06870 - Shares that are corporation tax deductible

Shares are corporation tax deductible if they are acquired by a person -

• by reason of that, or another persons' employment with a company; or
• pursuant to an option granted by reason of that, or another persons', employment with a company and that company is entitled to corporation tax relief in respect of the shares; and
• the company whose shares are acquired is a qualifying company as defined in Schedule 23 of the Finance Act 2003.

If the shares do not meet these conditions, they will always be deemed to be readily convertible assets (see NIM06869).