Paragraph 3

United Kingdom

(1)

Where under an approved share incentive plan—

(a)

partnership shares are awarded to employees by reason of their employment with a company, and

(b)

the market value of those shares at the time they are acquired by the trustees exceeds the partnership share money paid by the participants to acquire those shares,

a deduction is allowed under this paragraph to that company.

(2)

Any such deduction—

(a)

is of an amount equal to the amount of the excess referred to in sub-paragraph (1)(b), and

(b)

must be made for the period of account in which the shares are awarded to employees in accordance with the plan.

(3)

Except as provided by sub-paragraph (1), no deduction may be made by that company or any associated company in respect of the provision of those shares.

This is subject to paragraphs 7 and 8 (deductions for costs of setting up, and contributions to running expenses of, plan).

(4)

If a deduction is made under this paragraph by a company, no deduction may be made by any other company under this paragraph in respect of the provision of the shares.

(5)

This paragraph has effect subject to paragraph 4 (cases in which no deduction is allowed).

Notes on Schedule 4AA

Textual amendments

F1: Sch. 4AA repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 279, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F2: Sch. 4AA inserted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 109 (with Sch. 7)