Corporation Tax Act 2009

Chapter 6 Relationship between relief under this Part and other reliefs

1037 Priority of Chapter 1 of Part 11

(1) Deductions available under Chapter 1 of Part 11 (relief for particular employee share acquisition schemes: share incentive plans) are to be given priority over relief under this Part.

(2) No relief is available under this Part in relation to shares in respect of which a deduction is allowable, or has been made, under that Chapter.

1038 Exclusion of other deductions

(1) If relief under this Part is or, apart from condition 2 in section 1009(1), would be available for an accounting period, no other deduction in relation to expenses within subsection (2) is allowed for the purpose of calculating any company’s profits for corporation tax purposes for any accounting period.

(2) The expenses within this subsection are the expenses directly related to the provision of the shares.

(3) They include, in a case in which the shares are acquired under an employee share scheme, any amount paid or payable by the employing company in relation to the participation of the employee in the scheme.

(4) But they do not include in such a case—

(a) expenses incurred in setting up the scheme,

(b) expenses incurred in meeting, or contributing to, the costs of administering the scheme,

(c) the costs of borrowing for the purposes of the scheme, or

(d) fees, commission, stamp duty, stamp duty reserve tax, and similar incidental expenses of acquiring the shares.

(5) “Employee share scheme” means a scheme or arrangement for enabling shares to be acquired because of persons' employment.