SCHEDULES

SCHEDULE 8Employee share schemes

PART 1Share incentive plans

Other amendments: Chapter 1 of Part 11 of CTA 2009

74

Chapter 1 of Part 11 of CTA 2009 (relief for employee share acquisition schemes: share incentive plans) is amended as follows.

75

(1)

Section 983 (overview of Chapter) is amended as follows.

(2)

In subsection (1) for “approved” substitute “ Schedule 2 ”.

(3)

In subsection (7) for “approval for a plan is withdrawn” substitute “ a plan ceases to be a Schedule 2 share incentive plan ”.

76

(1)

Section 987 (deduction for cost of setting up plan) is amended as follows.

(2)

In the heading for “an approved” substitute “ a Schedule 2 ”.

(3)

In subsection (1) for “approved by an officer of Revenue and Customs” substitute “ a Schedule 2 share incentive plan ”.

(4)

Omit subsection (3).

(5)

In subsection (4) for “approval is given” (in both places) substitute “ relevant date falls ”.

(6)

After subsection (4) insert—

“(4A)

In subsection (4) “the relevant date”, in relation to a share incentive plan, has the meaning given in paragraph 81A(6) of Schedule 2 to ITEPA 2003.”

77

(1)

Section 988 (deductions for running expenses) is amended as follows.

(2)

In the heading for “an approved” substitute “ a Schedule 2 ”.

(3)

In subsections (1) and (3) for “an approved” substitute “ a Schedule 2 ”.

78

In section 989 (deduction for contribution to plan trust) in subsection (1)(a) for “an approved” substitute “ a Schedule 2 ”.

79

In section 994 (deduction for providing free or matching shares) in subsection (1) for “an approved” substitute “ a Schedule 2 ”.

80

In section 995 (deduction for additional expense in providing partnership shares) in subsection (1)(a) for “an approved” substitute “ a Schedule 2 ”.

81

In section 997 (no deduction for expenses in providing dividend shares) in subsection (1) for “an approved” substitute “ a Schedule 2 ”.

82

For the cross-heading before section 998 substitute “ Plan ceasing to be a Schedule 2 SIP ”.

83

(1)

Section 998 (withdrawal of deductions) is amended as follows.

(2)

In the heading for “approval for share incentive plan withdrawn” substitute “ share incentive plan ceases to be a Schedule 2 share incentive plan ”.

(3)

In subsection (1)—

(a)

in paragraph (a)—

(i)

after “section” insert “ 987, ”, and

(ii)

for “an approved” substitute “ a Schedule 2 ”, and

(b)

for paragraph (b) substitute—

“(b)

by virtue of paragraph 81H or 81I of Schedule 2 to ITEPA 2003 the plan is not to be a Schedule 2 share incentive plan.”