Paragraph 35 Share incentive plans: corporation tax deductions

Schedule 4AA^f1 is amended as follows.

In paragraph 1 (introductory) in sub-paragraph (4) for “investment companies” substitute “companies with investment business”.

In paragraph 7 (deduction for costs of setting up plan) in sub-paragraph (3) (approval given more than 9 months after end of period in which expenses incurred) for “incurred in” substitute “deductible for”.

In paragraph 13 (application of provisions to expenses of management of investment companies etc) for sub-paragraphs (1) and (2) substitute—

“(1)

The provisions of this Schedule apply in relation to—

(a)

companies with investment business, and

(b)

companies in relation to which section 76 applies (expenses of insurance companies),

in accordance with the following provisions.

(2)

The provisions of this Schedule which allow a deduction in calculating the profits of a trade apply—

(a)

in relation to a company with investment business, to treat amounts as expenses of management, and

(b)

in relation to companies in relation to which section 76 applies, to treat amounts as expenses payable falling to be brought into account at Step 1 in section 76(7).”.

The heading to paragraph 13 accordingly becomes “Application of provisions to expenses of management of companies with investment business etc”.