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SCHEDULES

SCHEDULE 5U.K.Enterprise management incentives

Part 7U.K.Notification of option to inland revenue

Notice of option to be given to Inland Revenue U.K.

44(1)For a share option to be a qualifying option, notice of the option must be given to [F1an officer of Revenue and Customs] within 92 days after the date of the grant of the option.U.K.

(2)The notice must—

(a)be given by the employer company, and

(b)be in a form required or authorised by [F1an officer of Revenue and Customs].

(3)The notice must contain, or be supported by, such information as [F1an officer of Revenue and Customs] may require for the purpose of determining whether the requirements of this Schedule are met.

(4)The notice must also contain a declaration within each of sub-paragraphs (5) and (6).

(5)A declaration within this sub-paragraph is a declaration by a director, or the secretary, of the employer company—

(a)that in the opinion of that person the requirements of this Schedule are met in relation to the option, and

(b)that the information provided is, to the best of that person’s knowledge, correct and complete.

(6)A declaration within this sub-paragraph is a declaration by the individual to whom the option has been granted that the individual meets the requirement of paragraph 26 (commitment of working time) in relation to the option.

(7)Any reference in this Part of this Schedule to the requirements (or any of the requirements) of this Schedule being met in relation to a share option is a reference to the requirements or requirement being met in relation to it at the appropriate time.

Textual Amendments

Correction of notice by Inland Revenue U.K.

45(1)[F1An officer of Revenue and Customs] may amend a notice given under paragraph 44 so as to correct obvious errors or omissions in the notice.U.K.

(2)A correction under this paragraph must be made by a notice given to the employer company.

(3)No correction may be made under this paragraph more than 9 months after the day on which the notice under paragraph 44 was given to [F1an officer of Revenue and Customs].

(4)A correction under this paragraph is of no effect if the employer company, within 3 months after the date of issue of the notice of correction, gives notice to [F1an officer of Revenue and Customs] rejecting the correction.

Textual Amendments

Notice of enquiryU.K.

46(1)This paragraph applies where notice of a share option is given under paragraph 44.U.K.

(2)[F1An officer of Revenue and Customs] may enquire into the option if [F2the officer] [F3gives] notice to the employer company of [F4the officer's] intention to do so in accordance with this paragraph.

(3)[F1An officer of Revenue and Customs] may enquire into whether the requirement of paragraph 26 (commitment of working time) is met in relation to the option by the individual to whom it has been granted if [F5the officer] [F3gives] that individual notice of [F4the officer's] intention to do so in accordance with this paragraph.

(4)[F1An officer of Revenue and Customs] must give a copy of a notice under sub-paragraph (3) to the employer company.

(5)Unless given by virtue of sub-paragraph (6), a notice of enquiry may not be given more than 12 months after the end of the period of 92 days mentioned in paragraph 44(1) (the period within which a notice under that paragraph must be given).

(6)A notice of enquiry may be given at any time if [F1an officer of Revenue and Customs] [F6discovers] that any of the information provided in or in connection with the notice under paragraph 44 was false or misleading in a material respect.

(7)An option that has been the subject of one notice of enquiry under sub-paragraph (2) or (3) may not be the subject of another notice under that sub-paragraph, unless the notice is given by virtue of sub-paragraph (6).

(8)In this paragraph a “notice of enquiry” means a notice given under sub-paragraph (2) or (3).

Textual Amendments

Completion of enquiry: closure noticesU.K.

47(1)An enquiry under paragraph 46(2) is completed when [F1an officer of Revenue and Customs] [F7gives] the employer company a notice—U.K.

(a)informing the company that [F8the officer] [F7has] completed [F9the] enquiry, and

(b)stating [F10the officer's] decision as to whether the requirements of this Schedule are met in relation to the option.

(2)If [F1an officer of Revenue and Customs] [F11concludes] that the requirements of this Schedule are not so met, [F8the officer] must also give notice of that decision to the person to whom the option has been granted.

(3)An enquiry under paragraph 46(3) is completed when [F1an officer of Revenue and Customs] [F12gives] the individual concerned and the employer company a notice—

(a)informing the recipients that [F8the officer] [F12has] completed [F13the] enquiry, and

(b)stating [F14the officer's] decision as to whether the requirement of paragraph 26 (commitment of working time) is met by that individual in relation to the option.

(4)References in the EMI code to a “closure notice” are to a notice under sub-paragraph (1) or (3).

(5)A closure notice takes effect when it is issued.

Textual Amendments

Completion of enquiry: application for closure notice to be givenU.K.

48(1)An application may be made [F15to the tribunal] under this paragraph for a direction requiring [F1an officer of Revenue and Customs] to give a closure notice within a specified period.U.K.

(2)The application may be made—

(a)by the employer company, or

(b)in a case within paragraph 46(3), by the individual concerned.

F16(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F17(4)Any such application is to be subject to the relevant provisions of Part 5 of TMA 1970 (see, in particular, section 48(2)(b) of that Act).]

(5)[F18The tribunal] must give a direction unless F19... satisfied that [F1an officer of Revenue and Customs] [F20has] reasonable grounds for not giving a closure notice within a specified period.

Textual Amendments

Effect of enquiryU.K.

49(1)If [F1an officer of Revenue and Customs] [F21does] not give a notice of enquiry, the requirements of this Schedule are taken to be met in relation to the option.U.K.

(2)If [F1an officer of Revenue and Customs] [F21does] give a notice of enquiry, [F22the officer's] decision stated in the closure notice is conclusive as to whether the requirements of this Schedule are met in relation to the option.

(3)But this is subject—

(a)if [F22the officer's] decision is that the requirements are not met, to the outcome of any appeal against that decision under paragraph 50;

(b)if their decision is that the requirements are met, to the outcome of any subsequent enquiry under paragraph 46(6) (enquiry arising from discovery of false or misleading information).

(4)This paragraph does not affect the provisions of sections 532 to 539 (which relate to disqualifying events).

Textual Amendments

AppealsU.K.

50(1)The employer company may appeal against a decision of [F1an officer of Revenue and Customs] —U.K.

(a)that notice of the grant of the option was not given in accordance with paragraph 44, or

(b)that the requirements of this Schedule are not met in relation to the option.

(2)An individual may appeal against a decision of [F1an officer of Revenue and Customs] that the individual does not meet the requirement of paragraph 26 (commitment of working time).

(3)Notice of the appeal must be given to [F1an officer of Revenue and Customs] within 30 days after the date when the closure notice is given to the appellant.

F23(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments