Corporation Tax Act 2009 section 987

Deduction for costs of setting up an approved share incentive plan

Section 987 allows a corporation tax deduction for the costs a company incurs in setting up an approved Share Incentive Plan (SIP), and determines the period of account in which that deduction is given.

• A company that incurs expenses setting up a Schedule 2 Share Incentive Plan may claim a corporation tax deduction for those costs
• Where the plan's relevant date falls more than 9 months after the end of the period of account in which the set-up costs were incurred, the deduction is instead given in the period of account in which the relevant date falls
• The "relevant date" takes its meaning from paragraph 81A(6) of Schedule 2 to ITEPA 2003
• No other tax deduction may be claimed for the same set-up expenses