BIM44160 - Specific deductions - employee share schemes: "Case law" ESOP trusts, a/c periods starting before 1 Jan 2003 - timing of deductions

The timing of deductions, in computing employers’ taxable trading profits for periods starting before 1/1/2003, is determined by generally accepted accounting practice (GAAP), unless there is any specific legislation which overrides the accounting treatment for tax purposes (for example FA89/S43).

Guidance on the accounting treatment of employers’ contributions to employee share ownership trusts is at BIM44165 onwards.