Corporation Tax Act 2009

Deductions relating to setting up and running costs

987 Deduction for costs of setting up an approved share incentive plan

(1) This section applies if a company incurs expenses in setting up a share incentive plan that is approved by an officer of Revenue and Customs.

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

(3) But no deduction is allowed under this section if before the approval—

(a) an employee acquires rights under the plan, or

(b) the trustees acquire shares for the purposes of the plan.

(4) If the approval is given 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 approval is given.

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

988 Deductions for running expenses of an approved share incentive plan

(1) This section applies if a company incurs expenses in contributing to the expenses of the trustees in running an approved 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 an approved 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).