Part 11

Relief for particular employee share acquisition schemes
Chapter 1

Share incentive plans

Deductions and receipts: general

References to a deduction being allowed to a company
985
1
References in this Chapter to a deduction being allowed to a company are to be read in accordance with this section (and references to a deduction being made are to be read in that light).
2
If a deduction is allowed to a company, the deduction is made in calculating for corporation tax purposes the profits of a trade or property business carried on by the company.
This is subject to subsections (3) and (4).
3
If the company is a company with investment business (as defined in section 1218B), the amount of the deduction is 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).
4
If—
a
the company is a company in relation to which the I - E rules apply, and
b
the expenses are referable, in accordance with Chapter 4 of Part 2 of FA 2012, to the company's basic life assurance and general annuity business,
the expenses are treated for the purposes of section 76 of that Act as ordinary BLAGAB management expenses of the company.
5
So far as this Chapter 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.
Words in s. 985(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)
S. 985(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 185
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))