SCHEDULE 4AAShare incentive plans: corporation tax deductions
Deduction for additional expenses in providing partnership shares
3
(1)
Where under an approved share incentive plan—
(a)
partnership shares are awarded to employees by reason of their employment with a company, and
(b)
the market value of those shares at the time they are acquired by the trustees exceeds the partnership share money paid by the participants to acquire those shares,
a deduction is allowed under this paragraph to that company.
(2)
Any such deduction—
(a)
is of an amount equal to the amount of the excess referred to in sub-paragraph (1)(b), and
(b)
must be made for the period of account in which the shares are awarded to employees in accordance with the plan.
(3)
Except as provided by sub-paragraph (1), no deduction may be made by that company or any associated company in respect of the provision of those shares.
This is subject to paragraphs 7 and 8 (deductions for costs of setting up, and contributions to running expenses of, plan).
(4)
If a deduction is made under this paragraph by a company, no deduction may be made by any other company under this paragraph in respect of the provision of the shares.
(5)
This paragraph has effect subject to paragraph 4 (cases in which no deduction is allowed).