Corporation Tax Act 2009

Deductions relating to setting up and running costs U.K.

987 Deduction for costs of setting up [F1 a Schedule 2] share incentive plan U.K.

(1) This section applies if a company incurs expenses in setting up a share incentive plan that is [F2 a Schedule 2 share incentive plan].

(2) A deduction for the expenses is allowed to the company.

F3 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) If the [F4 relevant date falls] more than 9 months after the end of the period of account in which the expenses are incurred, the deduction is allowed for the period of account in which the [F4 relevant date falls].

[F5 (4A) In subsection (4) “the relevant date”, in relation to a share incentive plan, has the meaning given in paragraph 81A(6) of Schedule 2 to ITEPA 2003.]

(5) No other deduction is allowed in respect of expenses for which a deduction is allowed under this section.

Textual Amendments

F1 Words in s. 987 heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 76(2), 89 (with Sch. 8 paras. 90-96)

F2 Words in s. 987(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 76(3), 89 (with Sch. 8 paras. 90-96)

F3 S. 987(3) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 76(4), 89 (with Sch. 8 paras. 90-96)

F4 Words in s. 987(4) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 76(5), 89 (with Sch. 8 paras. 90-96)

F5 S. 987(4A) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 76(6), 89 (with Sch. 8 paras. 90-96)

988 Deductions for running expenses of [F6 a Schedule 2] share incentive plan U.K.

(1) This section applies if a company incurs expenses in contributing to the expenses of the trustees in running [F7 a Schedule 2] share incentive plan.

(2) This Chapter does not affect the deductions that, apart from this Chapter, are allowed to the company in relation to those expenses incurred by it.

(3) For the purposes of this section expenses of the trustees in running [F8 a Schedule 2] share incentive plan do not include expenses incurred in acquiring shares for the purposes of the plan other than expenses within subsection (4).

(4) The expenses within this subsection are—

(a) interest paid on money borrowed by the trustees for the purpose of acquiring the shares, and

(b) any of the following—

(i) fees,

(ii) commission,

(iii) stamp duty,

(iv) stamp duty reserve tax, and

(v) other incidental costs similar to any mentioned in sub-paragraphs (i) to (iv).

Textual Amendments

F6 Words in s. 988 heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 77(2), 89 (with Sch. 8 paras. 90-96)

F7 Words in s. 988(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 77(3), 89 (with Sch. 8 paras. 90-96)

F8 Words in s. 988(3) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 77(3), 89 (with Sch. 8 paras. 90-96)