Corporation Tax Act 2009 (c. 4)

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

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 1 U.K. Share incentive plans

Deductions relating to provision of certain types of shares U.K.

995 Deduction for additional expense in providing partnership shares U.K.

(1) This section applies if—

(a) under [F1 a 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.

Textual Amendments

F1 Words in s. 995(1)(a) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 80, 89 (with Sch. 8 paras. 90-96)