Part 2

Anti-avoidance and revenue protection

Securities etc

Approved share incentive plans
42
1
Paragraph 84(1) of Schedule 2 to ITEPA 2003 (approved share incentive plans) is amended as follows.
2
For paragraph (d) substitute—
d
an alteration being made—
i
in the share capital of a company any of whose shares are subject to the plan trust, or
ii
in the rights attaching to any shares of such a company,
that materially affects the value of shares that are subject to the plan trust;
.
3
In paragraph (e), for “have been awarded to participants” substitute “ are subject to the plan trust ”.
4
Section 989 of CTA 2009 (deduction for contribution to plan trust) is amended as follows.
5
In subsection (1), after paragraph (a) insert—
aa
the payment is not made pursuant to tax avoidance arrangements,
.
6
After subsection (6) insert—
6A
For the purposes of this section the payment mentioned in subsection (1)(a) is made pursuant to tax avoidance arrangements if—
a
it is made pursuant to arrangements entered into by the paying company, and
b
the main purpose, or one of the main purposes, of the paying company in entering into the arrangements was to obtain a deduction or an increased deduction.
6B
In subsection (6A) “arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.
7
The amendments made by subsections (1) to (3) have effect in relation to events taking place on or after 24 March 2010.
8
The amendments made by subsections (4) to (6) have effect in relation to payments made on or after that day.