SCHEDULES

SCHEDULE 5 U.K. Enterprise management incentives

Part 1 U.K. Introduction

Enterprise management incentives: qualifying options U.K.

1 (1) This Schedule makes provision for establishing what is a qualifying option for the purposes of the EMI code. U.K.

(2) In the EMI code a “qualifying option” means (in accordance with section 527(4)) a share option—

(a) in relation to which the requirements of this Schedule are met at the time when the option is granted, and

(b) which is notified to [F1 an officer of Revenue and Customs] in accordance with Part 7.

(3) The requirements of this Schedule are—

(a) the general requirements in Part 2,

(b) that the company whose shares are the subject of the option (“the relevant company”) is a qualifying company (see Part 3),

(c) that the individual to whom it is granted is an eligible employee in relation to that company (see Part 4),

(d) that the option is granted to the employee by reason of the employee’s employment—

(i) with that company, or

(ii) if that company is a parent company, with that company or another member of the group, and

(e) the requirements of Part 5 as to the terms of the option, the types of shares that may be subject to it, and other matters.

(4) In the EMI code, as it applies to a share option, “the appropriate time” means the time when the option is granted.

Textual Amendments

F1 Words 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)