Section 999 — Corporation Tax Act 2009: Deduction for costs of setting up SAYE option scheme or CSOP scheme

Deduction for costs of setting up SAYE option scheme or CSOP scheme 999 1 This section applies if—

a a company incurs expenses in setting up a scheme within subsection (2) ... ... b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 The schemes within this subsection are—

a Schedule 3 SAYE option schemes within the meaning of the SAYE code (see section 516(4) of ITEPA 2003),

and b Schedule 4 CSOP schemes within the meaning of the CSOP code (see section 521(4) of ITEPA 2003). ...

3 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 subsections (4) and (5).

4 If the company is a company with investment business (as defined in 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 (3) applies instead).

5 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.

6 If the relevant date falls more than 9 months after the end of the period of account in which the expenses are incurred—

a for the purposes of subsection (3) the deduction is to be made for the period of account in which the relevant date falls , or b for the purposes of subsection (4) or (5) the expenses are treated as referable to the accounting period in which the relevant date falls . 6A In subsection (6) “the relevant date”—

a in relation to a Schedule 3 SAYE option scheme, has the meaning given in paragraph 40A(6) of Schedule 3 to ITEPA 2003, and b in relation to a Schedule 4 CSOP scheme, has the meaning given in paragraph 28A(6) of Schedule 4 to ITEPA 2003.

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.