Section 988 | Deductions for running expenses of a Schedule 2 share incentive plan

(1)This section applies if a company incurs expenses in contributing to the expenses of the trustees in running a Schedule 2 share incentive plan.

(2)This Chapter does not affect the deductions that, apart from this Chapter, are allowed to the company in relation to those expenses incurred by it.

(3)For the purposes of this section expenses of the trustees in running a Schedule 2 share incentive plan do not include expenses incurred in acquiring shares for the purposes of the plan other than expenses within subsection (4).

(4)The expenses within this subsection are—

(a)interest paid on money borrowed by the trustees for the purpose of acquiring the shares, and

(b)any of the following—

(i)fees,

(ii)commission,

(iii)stamp duty,

(iv)stamp duty reserve tax, and

(v)other incidental costs similar to any mentioned in sub-paragraphs (i) to (iv).