[F184A Costs of establishing share option or profit sharing schemes: relief.U.K.
(1)Subsection (2) below applies where—
(a)a company incurs expenditure on establishing a share option scheme which the Board approve and under which no employee or director obtains rights before such approval is given, or
(b)a company incurs expenditure on establishing a profit sharing scheme which the Board approve and under which the trustees acquire no shares before such approval is given.
(2)In such a case the expenditure—
(a)shall be deducted in computing for the purposes of F2. . . [F3 Part 2 of ITTOIA 2005] the [F4profits] of a trade carried on by the company, F5. . .
[F6(b)F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(3)In a case where—
(a)subsection (2) above applies, and
(b)the approval is given after the end of the period of nine months beginning with the day following the end of the period of account in which the expenditure is incurred,
[F8for the purpose of applying subsection (2) above the expenditure shall be treated in accordance with subsection (3ZA) below.]
[F9(3ZA)Where this subsection applies—
(a)in applying subsection (2)(a) above, the expenditure shall be treated as incurred in the period of account in which the approval is given (and not the period of account mentioned in subsection (3)(b) above),
(b)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
[F11(3A)In this section, “” means—
(a)an SAYE option scheme within the meaning of the SAYE code (see section 516(4) of ITEPA 2003 (approved SAYE option schemes)), or
(b)a CSOP scheme within the meaning of the CSOP code (see section 521(4) of that Act (approved CSOP schemes)).]
(4)References in this section to approving are to approving under Schedule 9 [F12to this Act or under Schedule 3 or 4 to ITEPA 2003 (approved SAYE option schemes and approved CSOP schemes)].
(5)This section applies where the expenditure is incurred on or after 1st April 1991.]
Textual Amendments
F1S. 84A inserted by Finance Act 1991 (c. 31), s. 42
F2Words in s. 84A(2)(a) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 56(2)(a), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F3Words in s. 84A(2)(a) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 59 (with Sch. 2)
F4Words in s. 84A(2)(a) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a)(b), Sch. 7 para. 1
F5S. 84A(2)(b) and preceding word repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 56(2)(b), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F6S. 84A(2)(b)(c) substituted for s. 84A(2)(b) (28.9.2004 with effect in accordance with art. 1(2) of the amending Order) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 4(2)
F7S. 84A(2)(c) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 56(2)(c), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F8Words in S. 84A(3) substituted (28.9.2004 with effect in accordance with art. 1(2) of the amending Order) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 4(3)
F9S. 84A(3ZA) inserted (28.9.2004 with effect in accordance with art. 1(2) of the amending Order) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 4(4)
F10S. 84A(3ZA)(b) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 56(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F11S. 84A(3A) inserted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 11(2) (with Sch. 7)
F12Words in s. 84A(4) inserted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 9), s. 723, Sch. 6 para. 11(2) (with Sch. 7 para. 92)