BIM44085 - Specific deductions - employee share schemes: Contributions to QUESTs, a/c periods starting before 1 Jan 2003 - form and timing of relief

FA89/S67 (2) provides that a contribution by an eligible company to a qualifying employee share ownership trust shall be:

• deducted in computing for the purposes of Schedule D the profits of a trade carried on by the company, or
• treated as an expense of management in computing the profits for Corporation Tax purposes of an investment company or an insurance company.

If the conditions for relief are satisfied (see BIM44090) a contribution is allowable as either a trading expense or as an expense of management of the period of account in which the contribution is paid to the trustees.