Gift of shares to employees

Company is looking to issue new shares to an employee equating to 5% of the company share capital.

Can the market value of the shares be claimed as a deduction for calculating corporation tax?

If this is the case, will the employee pay tax over through self assessment rather than the company deducting through PAYE?  Can I assume also that they will not be considered RCAs and no NI will be payable?

The company is a private limited company currently owned by 2 individuals.

Thanks