BIM44065 - Measuring the profits (specific rules & practices) - receipts & deductions: specific deductions - employee share schemes: providing shares - accounting periods starting before 1 January 2003: contributions to qualifying employee share ownership trusts (QUESTs) - introduction
For accounting periods starting before 1 January 2003, FA89/S67 gives a specific statutory deduction for employers’ contributions to trusts which are qualifying employee share ownership trusts (QUESTs) under FA89/SCH5. The specific statutory deduction overrides general tax and accountancy principles, and is given for the period in which the employer’s contribution is paid to the trust.
The following paragraphs give guidance on deductions for contributions to QUESTs for accounting periods starting before 1 January 2003.
| BIM44070 | QUESTs | Relief under FA89/S67 |
| BIM44075 | QUESTs | Whether a qualifying trust |
| BIM44080 | QUESTs | Companies eligible for relief |
| BIM44085 | QUESTs | Form and timing of relief |
| BIM44090 | QUESTs | Conditions for relief |
| BIM44095 | QUESTs | Expenditure period |
| BIM44100 | QUESTs | Qualifying purposes |
| BIM44105 | QUESTs | Identification rules |
| BIM44110 | QUESTs | Receipts of claims under FA89/S67 |
| BIM44115 | QUESTs | Trustees’ certificate |
| BIM44120 | QUESTs | Trust office |
| BIM44125 | QUESTs | Recovery of relief |
| BIM44130 | QUESTs | Relief not claimed under FA89/S67 |
| BIM44135 | QUESTs | Costs of setting up qualifying trusts |
FA89/S67 does not apply to contributions to QUESTS made during accounting periods starting on or after 1 January 2003. Relief under FA89/S67 was phased out by FA03/S142. All other conditions in FA89 continue to apply so that CT deductions already obtained for earlier periods can be clawed back if the contribution is not used for a qualifying purpose within prescribed time limits.
Guidance on deductions for providing shares to employees (including shares provided through QUESTs) during accounting periods starting on or after 1 January 2003 is at BIM44250 onwards.
