Finance Act 2004

Consequential amendments: corporation tax relief

5 (1) Schedule 23 of the Finance Act 2003 (c. 14) (corporation tax relief for employee share acquisition) is amended as follows.

(2) In paragraph 21(4) (amount of relief on acquisition of restricted shares)—

(a) omit the words “increased by any amounts deducted under sections 481 and 482 of that Act”, and

(b) at the end add—

“No account shall be taken for this purpose of any relief under section 481 or 482 of that Act (relief for secondary Class 1 contributions or special contribution met by employee).”.

(3) In paragraph 21(6) (amount of relief on chargeable event in relation to restricted shares), at the end add—

“No account shall be taken for this purpose of any relief under section 428A of that Act (relief for secondary Class 1 contributions met by employee).”.

(4) In paragraph 22C(4) (amount of relief on acquisition of convertible shares)—

(a) omit the words “increased by any amounts deducted under sections 481 and 482 of that Act”, and

(b) at the end add—

“No account shall be taken for this purpose of any relief under section 481 or 482 of that Act (relief for secondary Class 1 contributions or special contribution met by employee).”.

(5) In paragraph 22C(6) (amount of relief on chargeable event in relation to convertible shares), at the end add—

“No account shall be taken for this purpose of any relief under section 442A of that Act (relief for secondary Class 1 contributions met by employee).”.

(6) Nothing in this paragraph affects the operation of paragraph 21(4) or 22C(4) of Schedule 23 to the Finance Act 2003 in relation to amounts deducted under section 481 or 482 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) before the amendment of those paragraphs by this Schedule.