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).