New clause 1 - Deductions: supplementary
Employee Share Schemes Bill
10:30 am
Mr Mark Lazarowicz (Edinburgh North and Leith, Labour/Co-operative)
I beg to move, That the clause be read a Second time.
This new clause proposes changes to the underlying legislation, the Finance Act 2000, which are consequential on the other changes that will result from the Bill, as amended. The changes are not substantive, but would ensure that corporation tax relief would be given only once in respect of the payment to trustees and would not, for example, be granted again when shares were distributed to employees under the share incentive plan.
In addition, the new clause would allow for up-front corporation tax relief to be withdrawn in the event that Inland Revenue approval of a company's SIP were withdrawn. Also, if the SIP were terminated, it would allow a part of the relief to be withdrawn, proportionate to the as yet undistributed number of the shares acquired by the trustees under the provisions of this clause.
Question put and agreed to.
Clause read a Second time, and added to the Bill.