51(1)[F1An officer of Revenue and Customs] may by notice require a person to provide [F2the officer] with information—U.K.
(a)which [F2the officer] reasonably [F3requires] for the performance of [F4the officer's] functions under the EMI code, and
(b)which the person to whom the notice is addressed has or can reasonably obtain.
(2)The power conferred by this paragraph extends, in particular, to information to enable [F1an officer of Revenue and Customs] —
(a)to decide whether a share option is a qualifying option, or
(b)to determine the liability to tax, including capital gains tax, of any person who has been granted a qualifying option.
(3)The notice must require the information to be provided within a specified period, which must not end earlier than 3 months after the date when the notice is given.
Textual Amendments
F1Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
F2Words in Sch. 5 para. 51(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(aa); S.I. 2005/1126, art. 2(2)(h)
F3Word in Sch. 5 para. 51(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(e); S.I. 2005/1126, art. 2(2)(h)
F4Words in Sch. 5 para. 51(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(2)(m); S.I. 2005/1126, art. 2(2)(h)
52(1)A company whose shares are subject to a qualifying option at any time during a tax year must deliver a return to [F1an officer of Revenue and Customs] .U.K.
(2)The return must—
(a)contain such information as [F1an officer of Revenue and Customs] may require, and
(b)be made before 7th July in the tax year following that to which it relates.
Textual Amendments
F1Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
53(1)For the purposes of this Part and Part 7 a person is not to be regarded as having failed to do anything required to be done within a particular period of time if—U.K.
(a)the person had a reasonable excuse for not doing it within that period, and
(b)if the excuse ceased to exist, the person did it without unreasonable delay after the excuse ceased to exist.
(2)Where sub-paragraph (1)(b) applies, any further time limit running from the end of the period concerned is instead to run from the time when the thing in question was actually done.
54(1)The Treasury may by order amend the EMI code—U.K.
(a)to make such amendments of paragraphs 13 to 23 (the trading activities requirement and related provisions) as they consider expedient;
(b)to substitute different sums of money for those for the time being specified in—
(i)paragraphs 5(1) and 6(1) and (3) (maximum entitlement of employee);
(ii)paragraph 12(1) and (2) (the gross assets requirement).
(2)An order under sub-paragraph (1)(b) which amends paragraphs 5(1) and 6(1) and (3) may amend section 536(1)(e) (other disqualifying events) so as to substitute the same sum for the one that is for the time being specified there.
55(1)For the purposes of the EMI code the “market value” of shares has the same meaning as it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act.U.K.
(2)Sub-paragraph (1) is subject to paragraph 5(7) (valuation of shares subject to restriction or risk of forfeiture) as it applies for the purposes of any provision of the EMI code.
56(1)This paragraph applies to the determination of the market value of shares for the purposes of the EMI code.U.K.
(2)Unless—
(a)it is agreed between the employer company and [F1an officer of Revenue and Customs] , or
(b)a reference is made under sub-paragraph (4),
the market value of shares is to be determined by [F1an officer of Revenue and Customs] .
(3)Where the market value of shares on any date needs to be determined for the purposes of the EMI code, [F1an officer of Revenue and Customs] and the employer company may agree that it is to be determined by reference to a date or dates, or to the average of the values on a number of dates, stated in the agreement.
(4)At any time before notice of [F1an officer of Revenue and Customs] determination has been given to the employer company, the company may give [F1an officer of Revenue and Customs] a notice requiring the question of the market value of the shares to be referred to the Commissioners.
(5)Any reference under sub-paragraph (4) must be made—
(a)to the General Commissioners, or
(b)if the applicant so elects (in accordance with section 46(1) of TMA 1970), to the Special Commissioners.
(6)The Commissioners to whom the reference is made must determine it in the same way as an appeal.
Textual Amendments
F1Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
57(1)The employer company may appeal against any determination by [F1an officer of Revenue and Customs] under paragraph 56.U.K.
(2)Notice of appeal must be given to [F1an officer of Revenue and Customs] within 30 days after the date when notice of their determination is given to the employer company.
(3)An appeal under this paragraph lies—
(a)to the General Commissioners, or
(b)if the applicant so elects (in accordance with section 46(1) of TMA 1970), to the Special Commissioners.
Textual Amendments
F1Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
58U.K.In the EMI code—
“arrangements” includes any scheme, agreement or understanding, whether it is legally enforceable or not;
“company” means a body corporate;
“group of companies” means a parent company and its 51% subsidiaries;
“the group”, in relation to a parent company, means that company and its 51% subsidiaries;
“parent company” means a company that has one or more 51% subsidiaries and “single company” means a company that does not;
“research and development” has the meaning given by section 837A of ICTA;
“” includes stock.
59U.K.In the EMI code the following expressions are defined or otherwise explained by the provisions indicated below:
| the appropriate time | paragraph 1(4) |
| arrangements | paragraph 58(1) |
| child | section 832(5) of ICTA, (and see section 721(6) of this Act) |
| close company | section 832(1) of ICTA, (and see paragraph 29(4)) |
| closure notice | paragraph 47(4) |
| company | paragraph 58 |
| company reorganisation (in Part 6 of this Schedule) | paragraph 39(2) |
| connected person | section 718 |
| control | section 719 (and see paragraphs 10(2) and 23(6)) |
| disqualifying event | see sections 532 to 539 |
| distribution | section 832(1) of ICTA |
| earnings | section 62 and see section 721(7) |
| the EMI code | section 527(3) |
| employee and employment | section 4 |
| eligible employee | paragraph 24 |
| employer company | paragraph 2 |
| excluded activities | paragraph 16 |
| farming | section 832(1) of ICTA |
| General Commissioners | section 2 of TMA 1970 |
| generally accepted accounting practice | [F5section 50(1) of the Finance Act 2004] |
| group of companies | paragraph 58 |
| the group | paragraph 58 |
| F6. . . | F6... |
| market value | paragraph 55 (and see paragraph 5(7)) |
| met (in Part 7 of this Schedule) | paragraph 44(7) |
| new option | paragraph 41(7) |
| notice | section 832(1) of ICTA |
| [F7offshore installation] | [F7section 837C of ICTA] |
| old option | paragraph 41(7) |
| ordinary share capital | section 832(1) of ICTA |
| original option | section 529(3) |
| parent company | paragraph 58 |
| personal representatives | section 721(1) |
| qualifying company | paragraph 8 |
| qualifying option | section 527(4) (and see paragraph 41(5)) |
| qualifying subsidiary | paragraph 11 |
| qualifying trade | paragraph 15 |
| relevant company | paragraph 2 |
| replacement option | section 527(4) |
| the requirements of this Schedule | section 527(4) |
| research and development | paragraph 58 |
| share option | section 527(4) |
| shares | paragraph 58 (and see paragraph 40(4)(a)) |
| single company | paragraph 58 |
| Special Commissioners | section 4 of TMA 1970 |
| 51% subsidiary | section 838(1) of ICTA |
| tax | section 832(3) of ICTA |
| tax year | section 721(1) |
| trade | section 832(1) of ICTA |
| United Kingdom | section 830 of ICTA |
Textual Amendments
F5Words in Sch. 5 para. 59 substituted (7.4.2005) by Finance Act 2005 (c. 7), Sch. 4 para. 48
F6Words in Sch. 5 para. 59 repealed (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(f), Sch. 5; S.I. 2005/1126, art. 2(2)(h)(i)
F7Words in Sch. 5 para. 59 inserted (with effect in accordance with Sch. 27 para. 17(6)(7) of the amending Act) by Finance Act 2004 (c. 12), Sch. 27 para. 17(5)