Commentary on Sections Overview Chapter 1: Share incentive plans Section 998: Withdrawal of deductions if approval for share incentive plan withdrawn
2568.This section withdraws any deduction given under this Chapter if approval for the SIP is withdrawn. It is based on paragraph 11 of Schedule 4AA to ICTA.
2569.Paragraph 83 of Schedule 2 to ITEPA allows an officer of Revenue and Customs to issue a notice to the company withdrawing approval of a SIP. If approval is withdrawn a separate notice must be issued under subsection (2) of this section to recover any relief given under this Chapter.
2570.The relief is withdrawn by treating the company as receiving an amount equal to the amount of the deduction. Section 986 sets out how this amount is taxed.
2571.This section contains a change to clarify and make more consistent the way in which withdrawn relief is treated. See Change 76 in Annex 1 and the commentary on section 986.