Statement by H.E. Erlan A. Idrissov, Minister for Foreign Affairs

Schedule 8 to the Finance Act 2000 (employee share ownership plans) is amended as follows.

The instrument may contain terms that— and such terms shall be deemed reasonably incidental to complying with the requirements of this Part of this Schedule for the purposes of sub-paragraph (3).

After paragraph 112 there is inserted—

After paragraph 112A (as inserted by subsection (3) above) there is inserted—

Schedule 8 to the Finance Act 2000 is also amended as specified in this section.

No deduction is allowed in respect of the award of shares acquired by the trustees by virtue of a payment in respect of which a deduction has been made under paragraph 112A or 112B(3).

In paragraph 113 (withdrawal of deductions on withdrawal of approval), for the words from “any” to “partnership shares)” there is substituted—.

In a case where— an amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the plan termination notice is given. For the purposes of sub-paragraph (10), the appropriate proportion of the deduction is the proportion which the number of shares acquired by virtue of the payment and not awarded as specified in sub-paragraph (10)(c) bears to the total number of shares so acquired.

Schedule 8 to the Finance Act 2000 is also amended as specified in this section.

In the case of shares acquired by the trustees by virtue of a payment in respect of which a deduction is allowed under paragraph 112A, the period applicable to the shares is (notwithstanding sub-paragraphs (3) and (4)) the period of ten years beginning with the date of acquisition.

In the case of shares acquired by the trustees by virtue of a payment in respect of which a deduction is allowed under paragraph 112A, the relevant period is (notwithstanding sub-paragraphs (2) and (3)) the period of ten years beginning with the date of acquisition.

For the purposes of that Chapter, any shares which— shall (notwithstanding that they would otherwise fall to be treated as of the same class) be treated as of a different class from any shares held by the trustees that were not so acquired by them.