Commentary on Sections Overview Chapter 1: Share incentive plans Section 997: No deduction for expenses in providing dividend shares
2566.This section provides that no deduction is allowed for the cost of providing dividend shares. It is based on paragraph 5 of Schedule 4AA to ICTA.
2567.The expression “dividend shares” is defined in paragraph 62(3)(b) of Schedule 2 to ITEPA. They are shares acquired by the trustees reinvesting cash dividends declared on plan shares the trustees hold on behalf of employees participating in the SIP.