Corporation Tax Act 2009 section 999

Deduction for costs of setting up SAYE option scheme or CSOP scheme

Section 999 allows a corporation tax deduction for the costs a company incurs in setting up a Save As You Earn (SAYE) option scheme or a Company Share Option Plan (CSOP) scheme.

• Companies may deduct the set-up costs of qualifying SAYE option schemes and CSOP schemes when calculating trading or property business profits for corporation tax purposes, even though such costs would normally be treated as capital expenditure
• For investment companies (other than those running a property business), the set-up expenses are instead treated as expenses of management; for life insurance companies subject to the I minus E rules, expenses attributable to basic life assurance and general annuity business are treated as ordinary BLAGAB management expenses
• Where the scheme's relevant date (broadly, the date linked to notification or registration of the scheme with HMRC) falls more than 9 months after the end of the period of account in which the expenses were incurred, the deduction is shifted to the period of account in which that relevant date falls
• The deduction overrides the general rule that capital expenditure cannot be deducted in calculating trading or property business profits