SCHEDULES

SCHEDULE 4AAShare incentive plans: corporation tax deductions

Withdrawal of deductions on withdrawal of approval

11

(1)

If approval of a share incentive plan is withdrawn the Inland Revenue may by notice to a company direct that the benefit of—

(a)

any deductions under paragraph 2 (deduction for providing free or matching shares),

(b)

any deductions under paragraph 3 (deduction for additional expenses in providing partnership shares),

(c)

any deductions under paragraph 9 (deduction for contribution to plan trust) (in so far as not already withdrawn under paragraph 10), or

(d)

any deductions under paragraph 10(3) (further deduction where deduction under paragraph 9 withdrawn),

in relation to the plan is also withdrawn.

(2)

The effect of the direction is that the aggregate amount of the deductions is treated as a trading receipt of that company for the period of account in which the Inland Revenue give notice of the withdrawal of approval.