519B Costs of establishing savings-related share option schemes.

(1) ^[2]>This section shall apply^<[2][2]>Subject to subsection (2A) this section shall apply^<[2] to a sum expended on or after the 6th day of April, 1999, by a company in establishing a savings-related share option scheme which the Revenue Commissioners approve of in accordance with the provisions of Schedule 12A and under which no employee or director obtains rights before such approval is given.

(2) A sum to which this section applies shall be included—

(a) in the sums to be deducted in computing for the purposes of Schedule D the profits or gains of a trade carried on by the company, or

(b) if the company is an investment company within the meaning of section 83 or a company in the case of which that section applies by virtue of section 707, in the sums to be deducted under section 83(2) as expenses of management in computing the profits of the company for the purposes of corporation tax.

(3) In a case where—

(a) subsection (2) applies, and

(b) the approval is given after the end of the period of 9 months beginning on the day following the end of the accounting period in which the sum is expended,

then, for the purpose of subsection (2), the sum shall be treated as expended in the accounting period in which the approval is given and not the accounting period mentioned in paragraph (b).