SCHEDULE 14 Enterprise management incentives
Part IX Supplementary provisions
Power to require information
64
(1)
The Inland Revenue may by notice require any person to furnish them, within such time as the Inland Revenue may direct (not being less than three months), with such information as—
(a)
the Inland Revenue think necessary for the performance of their functions under this Schedule, and
(b)
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 the Inland Revenue—
(a)
to decide whether an 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)
“paragraph 64 of Schedule 14 to the Finance Act 2000;”.
Annual returns
65
(1)
A company whose shares are the subject of a qualifying option at any time during a tax year must deliver a return to the Inland Revenue.
(2)
The return must—
(a)
contain such information as the Inland Revenue may require, and
(b)
be made within three months after the end of the tax year to which it relates.
(3)
“paragraph 65 of Schedule 14 to the Finance Act 2000;”.
Determination of market value
67
(1)
The market value of shares for the purposes of this Schedule, if not agreed between the employer company and the Inland Revenue or referred to the Commissioners under sub-paragraph (4), shall be determined by the Inland Revenue.
(2)
The employer company may appeal against any such determination.
(3)
Notice of appeal must be given to the Inland Revenue within 30 days after their notice of their determination was given to the employer company.
(4)
The employer company may, at any time before notice of determination by the Inland Revenue has been given to it, by notice given to the Inland Revenue require the question of the market value of the shares to be referred to the Commissioners.
Any such reference shall be determined by the Commissioners in the same way as an appeal.
(5)
An appeal or reference under this paragraph lies to the General Commissioners or, if the employer company so elects (in accordance with section 46(1) of the M4Taxes Management Act 1970), to the Special Commissioners.
Exercise of functions conferred on “the Inland Revenue"
68
Functions conferred by this Schedule on “the Inland Revenue" may be exercised by any officer of the Board.
Power to amend by Treasury order
69
The Treasury may by order amend this Schedule—
(a)
to make such amendments of paragraphs 17 to 26 (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—
paragraph 10(1), (4) and (5) (maximum entitlement of employee), or
paragraph 16(1) and (2) (the gross assets requirement).
Compliance with time limits
70
(1)
For the purposes of this Part and Part I of this Schedule a person is not taken to have failed to do anything required to be done within a limited time if—
(a)
he had a reasonable excuse for not doing it within that time, and
(b)
if the excuse ceased, he did it without unreasonable delay after the excuse ceased.
(2)
Where sub-paragraph (1)(b) applies any further time limit expressed by reference to the time when the thing should have been done shall have effect as if it had been expressed by reference to the time when it was done.
Minor definitions
71
(1)
In this Schedule—
“arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;
“company” means any body corporate;
“group”, in relation to a parent company, means that company and its 51% subsidiaries;
“group company”, in relation to a parent company, means that company or any of its 51% subsidiaries;
“parent company” means a company that has one or more 51% subsidiaries and “single company” means a company that does not;
“option” means any right to acquire shares;
“” has the meaning given in section 832(1) of the Taxes Act 1988;
“research and development” has the meaning given by section 837A of the Taxes Act 1988;
“” includes stock; and
“tax year” means a year of assessment.
(2)
Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of this Schedule.
Index of defined expressions
72
In this Schedule the following expressions are defined or otherwise explained by the provisions indicated:
arrangements | paragraph 71(1) |
closure notice (in Part I) | paragraph 5(4) |
company | paragraph 71(1) |
company reorganisation (in Part VIII) | paragraph 59(2) |
connected person | paragraph 71(2) |
disqualifying event | paragraphs 47 to 52 |
eligible employee | paragraph 27 |
employer company | paragraph 1(3) |
excluded activities | paragraph 19 |
gross assets requirement | paragraph 16 |
group and group company | paragraph 71(1) |
the independence requirement | paragraph 13 |
the Inland Revenue | paragraph 68 |
market value | paragraph 66 (and see paragraph 10(8)) |
new option | paragraph 61(4) |
old option | paragraph 61(4) |
option | paragraph 71(1) |
ordinary share capital | paragraph 71(1) |
original option (in Parts VI and VII) | paragraph 56(3) |
parent company | paragraph 71(1) |
qualifying company | paragraph 12 |
qualifying option | paragraph 1 (and see paragraph 61(3)) |
qualifying shares (in Part VII) | paragraph 56 |
qualifying subsidiary | paragraph 15 |
qualifying trade | paragraph 18 |
relevant company | paragraph 1(3) |
replacement option | paragraph 61(2) |
research and development | paragraph 71(1) |
shares | paragraph 71(1) (and see paragraph 60(4)) |
single company | paragraph 71(1) |
tax year | paragraph 71(1) |
trading activities requirement | paragraph 17 |