C1Part 7F1Employment income: income and exemptions relating to securities
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Chapter 9Enterprise management incentives
Introduction
527Enterprise management incentives: qualifying options
1
This Chapter provides—
a
for share options notified to F2an officer of Revenue and Customs to be qualifying options for the purposes of the EMI code, and
b
for exemptions and reliefs from income tax in connection with qualifying options.
2
Schedule 5 contains the requirements that have to be met for a share option to be a qualifying option, together with the notification procedure.
3
The provisions of—
a
this and the following sections of this Chapter,
b
Schedule 5, and
c
Part 4 of Schedule 7D to TCGA 1992 (enterprise management incentives: capital gains tax consequences of exercise of qualifying option),
together constitute “the EMI code”.
4
In the EMI code—
“qualifying option” means a share option—
- a
in relation to which the requirements of Schedule 5 are met at the time when the option is granted, and
- b
which is notified to F2an officer of Revenue and Customs in accordance with Part 7 of that Schedule;
- a
“replacement option” means an option within paragraph 41(4) of that Schedule (grant of replacement option in connection with company reorganisations);
“share option” means a right to acquire shares in a company;
and any reference to the requirements of Schedule 5 is to the requirements set out in paragraph 1(3) of that Schedule.
5
Other expressions used in the EMI code and contained in the index at the end of Schedule 5 have the meaning indicated by the index.
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)