C1Part 11Relief for particular employee share acquisition schemes

Annotations:
Modifications etc. (not altering text)
C1

Pt. 11 applied by 2010 c. 8, s. 425(1) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))

Chapter 1Share incentive plans

Deductions relating to provision of certain types of shares

995Deduction for additional expense in providing partnership shares

1

This section applies if—

a

under F1a Schedule 2 share incentive plan, partnership shares are awarded to employees because of their employment with a company (“the employing company”), and

b

the market value of the shares when they were acquired by the trustees of the plan trust exceeds the partnership share money paid by the participants to acquire those shares.

2

A deduction is allowed to the employing company for the period of account in which the shares are awarded.

3

The amount of the deduction is an amount equal to the excess mentioned in subsection (1)(b).

4

No deduction, other than one under this section, is allowed to the employing company or any associated company in relation to the provision of the shares.

5

But subsection (4)—

a

does not prevent a deduction being allowed under section 987 in relation to expenses incurred by a company in setting up a share incentive plan, and

b

is subject to section 988.

6

If the shares are awarded to the employees because of their employment with two or more companies, only one of those companies may make a deduction under this section in relation to the award.

7

This section is subject to section 996.