In paragraph 108 (cases in which no deduction allowed), at the end there is inserted—

“(6)

No deduction is allowed in respect of the award of shares acquired by the trustees by virtue of a payment in respect of which a deduction has been made under paragraph 112A or 112B(3).”

In paragraph 113 (withdrawal of deductions on withdrawal of approval), for the words from “any” to “partnership shares)” there is substituted—

“(a)

any deductions under paragraph 106,

(b)

any deductions under paragraph 107,

(c)

any deductions under paragraph 112A (in so far as not already withdrawn under paragraph 112B), or

(d)

any deductions under paragraph 112B(3),”.

In paragraph 121 (termination of plan), at the end there is inserted—

“(10)

In a case where—

(a)

by virtue of a payment made to the trustees by the company, the trustees acquire shares in the company, or a company which controls it,

(b)

a deduction has been made in respect of that payment under paragraph 112A (and has not been withdrawn under paragraph 112B), and

(c)

not all the shares acquired by virtue of the payment have been awarded under the plan before issue of the plan termination notice,

an amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the plan termination notice is given.

(11)

For the purposes of sub-paragraph (10), the appropriate proportion of the deduction is the proportion which the number of shares acquired by virtue of the payment and not awarded as specified in sub-paragraph (10)(c) bears to the total number of shares so acquired.”