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 2 U.K. SAYE option schemes, company share option schemes and employee share options trusts

1000 Deduction for costs of setting up employee share ownership trust U.K.

(1) This section applies if a company incurs expenses in setting up a qualifying employee share ownership trust (within the meaning of Schedule 5 to FA 1989).

(2) A deduction for the expenses is to be made in calculating for corporation tax purposes the profits of a trade or property business carried on by the company.

This is subject to [F1 subsection (3)].

(3) If the company is a company with investment business (as defined in [F2 section 1218B]), the expenses are treated as expenses of management of the company.

But this subsection does not apply if the company's business is a property business (in which case subsection (2) applies instead).

F3 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If the trust is established more than 9 months after the end of the period of account in which the expenses are incurred—

(a) for the purposes of subsection (2) the deduction is to be made for the period of account in which the trust is established, or

(b) for the purposes of subsection (3) or (4) the expenses are treated as referable to the accounting period in which the trust is established.

(6) For the purposes of subsection (5) a trust is established when the deed under which it is established is executed.

(7) So far as this section provides for a deduction to be allowed, it has effect despite section 53 (no deduction for items of a capital nature in calculating trading profits), including that section as applied by section 210 to the calculation of profits of a property business.

Textual Amendments

F1 Words in s. 1000(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 187(2)

F2 Words in s. 1000(3) substituted (with effect in accordance with Sch. 18 para. 23 of the amending Act) by Finance Act 2013 (c. 29), Sch. 18 paras. 21(2), 22; S.I. 2013/1817, art. 2(2); S.I. 2014/1962, art. 2(3)

F3 S. 1000(4) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 187(3)

Modifications etc. (not altering text)

C2 S. 1000 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 81(2)(3)(7) (with s. 147, Sch. 17)