Corporation Tax Act 2009

Chapter 2 U.K. SAYE option schemes, company share option schemes and employee share options trusts

999 Deduction for costs of setting up SAYE option scheme or CSOP scheme U.K.

(1) This section applies if—

(a) a company incurs expenses in setting up a scheme within subsection (2) F1 ... F2 ...

(b) F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The schemes within this subsection are—

(a) [F3 Schedule 3] SAYE option schemes within the meaning of the SAYE code (see section 516(4) of ITEPA 2003), and

(b) [F4 Schedule 4] CSOP schemes within the meaning of the CSOP code (see section 521(4) of ITEPA 2003).

F5 ...

(3) A deduction for the expenses is to be made in calculating for corporation tax purposes the profits of a trade or property business carried on by the company.

This is subject to subsections (4) and (5).

(4) If the company is a company with investment business (as defined in [F6 section 1218B]), the expenses are treated as expenses of management of the company.

But this subsection does not apply if the company's business is a property business (in which case subsection (3) applies instead).

[F7 (5) If—

(a) the company is a company in relation to which the I - E rules apply, and

(b) the expenses are referable, in accordance with Chapter 4 of Part 2 of FA 2012, to the company's basic life assurance and general annuity business,

the expenses are treated for the purposes of section 76 of that Act as ordinary BLAGAB management expenses of the company.]

(6) If the [F8 relevant date falls] more than 9 months after the end of the period of account in which the expenses are incurred—

(a) for the purposes of subsection (3) the deduction is to be made for the period of account in which the [F8 relevant date falls], or

(b) for the purposes of subsection (4) or (5) the expenses are treated as referable to the accounting period in which the [F8 relevant date falls].

[F9 (6A) In subsection (6) “the relevant date”—

(a) in relation to a Schedule 3 SAYE option scheme, has the meaning given in paragraph 40A(6) of Schedule 3 to ITEPA 2003, and

(b) in relation to a Schedule 4 CSOP scheme, has the meaning given in paragraph 28A(6) of Schedule 4 to ITEPA 2003.]

(7) So far as this section provides for a deduction to be allowed, it has effect despite section 53 (no deduction for items of a capital nature in calculating trading profits), including that section as applied by section 210 to the calculation of profits of a property business.

Textual Amendments

F1 Words in s. 999(1)(a) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 142(2)(a), 146 (with Sch. 8 paras. 147-157)

F2 S. 999(1)(b) and word omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 142(2)(b), 146 (with Sch. 8 paras. 147-157)

F3 Words in s. 999(2)(a) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 142(3)(a), 146 (with Sch. 8 paras. 147-157)

F4 Words in s. 999(2)(b) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 142(3)(b), 146 (with Sch. 8 paras. 147-157)

F5 Words in s. 999(2) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 142(3)(c), 146 (with Sch. 8 paras. 147-157)

F6 Words in s. 999(4) substituted (with effect in accordance with Sch. 18 para. 23 of the amending Act) by Finance Act 2013 (c. 29), Sch. 18 paras. 21(2), 22; S.I. 2013/1817, art. 2(2); S.I. 2014/1962, art. 2(3)

F7 S. 999(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 186

F8 Words in s. 999(6) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 142(4), 146 (with Sch. 8 paras. 147-157)

F9 S. 999(6A) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 142(5), 146 (with Sch. 8 paras. 147-157)

1000 Deduction for costs of setting up employee share ownership trust U.K.

(1) This section applies if a company incurs expenses in setting up a qualifying employee share ownership trust (within the meaning of Schedule 5 to FA 1989).

(2) A deduction for the expenses is to be made in calculating for corporation tax purposes the profits of a trade or property business carried on by the company.

This is subject to [F10 subsection (3)].

(3) If the company is a company with investment business (as defined in [F11 section 1218B]), the expenses are treated as expenses of management of the company.

But this subsection does not apply if the company's business is a property business (in which case subsection (2) applies instead).

F12 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If the trust is established more than 9 months after the end of the period of account in which the expenses are incurred—

(a) for the purposes of subsection (2) the deduction is to be made for the period of account in which the trust is established, or

(b) for the purposes of subsection (3) or (4) the expenses are treated as referable to the accounting period in which the trust is established.

(6) For the purposes of subsection (5) a trust is established when the deed under which it is established is executed.

(7) So far as this section provides for a deduction to be allowed, it has effect despite section 53 (no deduction for items of a capital nature in calculating trading profits), including that section as applied by section 210 to the calculation of profits of a property business.

Textual Amendments

F10 Words in s. 1000(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 187(2)

F11 Words in s. 1000(3) substituted (with effect in accordance with Sch. 18 para. 23 of the amending Act) by Finance Act 2013 (c. 29), Sch. 18 paras. 21(2), 22; S.I. 2013/1817, art. 2(2); S.I. 2014/1962, art. 2(3)

F12 S. 1000(4) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 187(3)

Modifications etc. (not altering text)

C1 S. 1000 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 81(2)(3)(7) (with s. 147, Sch. 17)