Valid from 01/04/2009

Part 11 U.K. Relief for particular employee share acquisition schemes

Chapter 1 U.K. Share incentive plans

Deductions relating to payments used to acquire shares U.K.

990 Withdrawal of deduction under section 989 U.K.

(1) If—

(a) a deduction is made under section 989, and

(b) condition A or B is met,

an officer of Revenue and Customs may by notice direct that the deduction is withdrawn.

(2) Condition A is that less than 30% of the acquired shares have been awarded under the plan before the end of the period of 5 years beginning with the date on which the trustees acquire them.

(3) Condition B is that not all the acquired shares have been awarded under the plan before the end of the period of 10 years beginning with the date on which the trustees acquire them.

(4) If a direction is made, the paying company is treated as receiving an amount equal to the deduction.

(5) The amount is treated as received when the direction is made.

(6) For the purposes of this section and sections 991 to 993—

(a) “the acquired shares” means the shares acquired by the trustees as mentioned in section 989(1)(b), and

(b) if the trustees acquire shares on different days, assume that shares acquired on an earlier day are awarded under the plan before those acquired on a later day.