UK: New guidance on corporate tax deductibility of cash cancelled or net-settled employee share options
HMRC’s view on the timing of corporation tax relief may cause practical difficulties for some companies
HMRC’s view on the timing of corporation tax relief may cause difficulties
HMRC has published new guidance on the availability of corporation tax relief for cash cancelled or net-settled employee share options.
While this confirms that “general principles” corporation tax relief is potentially available when specific statutory relief is not, in some scenarios HMRC’s view on the timing of corporation tax relief may cause practical difficulties for some companies. Further, an understanding of whether an award is an “option” is fundamental to applying the corporation tax rules correctly.
Read an October 2023 report* [PDF 682 KB] prepared by the KPMG member firm in the UK
* First published in Tax Journal on 6 October 2023. Reproduced with permission.
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