{
  "url": "https://openlegislation.uk/finance-act-2000/schedule-8/paragraph-112B",
  "json_url": "https://openlegislation.uk/finance-act-2000/schedule-8/paragraph-112B.json",
  "legislation": "ukpga/2000/17",
  "legislation_title": "Finance Act 2000",
  "legislation_url": "https://openlegislation.uk/finance-act-2000",
  "path": "schedule/8/paragraph/112B",
  "kind": "paragraph",
  "number": "112B",
  "heading": "Withdrawal of deduction under paragraph 112A",
  "text": "(1) The Inland Revenue may by notice direct that the benefit of a deduction made under paragraph 112A is withdrawn where—\n(a) 30 per cent of the shares acquired by virtue of the payment in respect of which the deduction is made have not been awarded under the plan before the end of the period of five years beginning with the date of acquisition, or\n(b) all the shares acquired by virtue of that payment have not been so awarded before the end of the period of ten years beginning with that date.\n(2) The effect of a direction under sub-paragraph (1)(a) or (b) is that the amount of the deduction is treated as a trading receipt of the company for the period of account in which the direction is given.\n(3) However, where—\n(a) the Inland Revenue give a direction under sub-paragraph (1)(a) or (b) in respect of any deduction, and\n(b) at any time after the giving of the direction, all the shares acquired by virtue of the payment in respect of which the deduction was made are awarded under the plan,\na further deduction is allowed under this sub-paragraph to the company which made the payment.\n(4) A deduction under sub-paragraph (3)—\n(a) is of an amount equal to the amount of the payment referred to in that sub-paragraph, and\n(b) must be made for the period of account in which sub-paragraph (3)(b) is first satisfied.\n(5) No other deduction is allowed in respect of any amount for which a deduction has been made under sub-paragraph (3).\n(6) Where—\n(a) a deduction is made under paragraph 112A or sub-paragraph (3) in respect of a payment for the acquisition of shares, but\n(b) shares are awarded under the plan to an individual who at the time is not a Schedule E taxpayer (as defined by paragraph 108(2)),\nan amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the shares are so awarded.\n(7) For the purposes of sub-paragraph (6), the appropriate proportion of the deduction is the proportion which the number of shares awarded to the individual bears to the total number of shares acquired by virtue of the payment.\n(8) For the purposes of this paragraph, where shares are acquired by the trustees on different days, it shall be assumed that those acquired on an earlier day are awarded to employees under the plan before those acquired by the trustees on a later day.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 8 para. 112B inserted (6.4.2003) by 2002 c. 34, ss. 1(4), 5"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2000/17/schedule/8/paragraph/112B",
    "retrieved_at": "2026-10-29T09:21:00.128981+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}