Section 995 — Corporation Tax Act 2009: Deduction for additional expense in providing partnership shares

Deduction for additional expense in providing partnership shares 995 1 This section applies if—

a under a Schedule 2 share incentive plan, partnership shares are awarded to employees because of their employment with a company (“the employing company”),

and b the market value of the shares when they were acquired by the trustees of the plan trust exceeds the partnership share money paid by the participants to acquire those shares.

2 A deduction is allowed to the employing company for the period of account in which the shares are awarded.

3 The amount of the deduction is an amount equal to the excess mentioned in subsection (1)(b).

4 No deduction, other than one under this section, is allowed to the employing company or any associated company in relation to the provision of the shares.

5 But subsection (4)—

a does not prevent a deduction being allowed under section 987 in relation to expenses incurred by a company in setting up a share incentive plan, and b is subject to section 988.

6 If the shares are awarded to the employees because of their employment with two or more companies, only one of those companies may make a deduction under this section in relation to the award.

7 This section is subject to section 996.