Corporation Tax Act 2009 section 989

Deduction for contribution to plan trust

Section 989 allows a corporation tax deduction for contributions made to a share incentive plan trust, but paragraph 105 of Schedule 2 provides a transitional rule restricting this relief for earlier payments.

• Section 989 permits a deduction for employer contributions to a share incentive plan (SIP) trust.
• The deduction under section 989(1)(a) does not apply to any payment made before 6 April 2003.
• This is a transitional provision ensuring the new deduction rule only applies to contributions from 6 April 2003 onwards.
• Contributions made before that date must be dealt with under the tax rules that were in force at the time of payment.