Income Tax (Trading and Other Income) Act 2005 section 94A

Costs of setting up SAYE option scheme or CSOP scheme

Section 94A allows a company to claim a tax deduction for the costs of setting up a Save As You Earn (SAYE) option scheme or a Company Share Option Plan (CSOP) scheme.

• A company that incurs expenses setting up a Schedule 3 SAYE option scheme or a Schedule 4 CSOP scheme may deduct those costs when calculating its trading profits
• The deduction is normally made in the period of account in which the set-up expenses are incurred
• If the relevant date for the scheme falls more than 9 months after the end of the period of account in which the expenses arose, the deduction is instead made in the period of account in which the relevant date falls
• The timing adjustment does not apply where trade profits are calculated on the cash basis