C1Part 11Relief for particular employee share acquisition schemes
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.
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))