Income Tax (Earnings and Pensions) Act 2003

Part 7 U.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 [F1 an 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, F2 ...

F2 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The notice must contain, or be supported by, such information as [F1 an 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 [F3 sub-paragraph (5)].

(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, F4 ...

(b) that the information provided is, to the best of that person’s knowledge, correct and complete[F5 , and

(c) that the individual to whom the option has been granted has made and signed a written declaration within sub-paragraph (6) and that the declaration is held by the employer company].

[F6 (5A) The employer company must—

(a) retain the declaration mentioned in sub-paragraph (5)(c) and, if requested to do so by an officer of Revenue and Customs, produce it to such an officer before the end of the period of 7 days after the day on which the request is made, and

(b) give a copy of that declaration to the individual before the end of the period of 7 days after the day on which the declaration is signed by the individual.]

(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.

[F7 (8) The notice, and any information supporting it, must be given electronically.

(9) But, if an officer of Revenue and Customs considers it appropriate to do so, the officer may allow the employer company to give the notice or any supporting information in another way; and, if the officer does so, the notice or information must be given in that other way.

(10) The Commissioners for Her Majesty's Revenue and Customs—

(a) must prescribe how notices and supporting information are to be given electronically;

(b) may make different provision for different cases or circumstances.]

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)

F2 Sch. 5 para. 44(2)(b) and word omitted (with effect in accordance with Sch. 8 para. 223 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 217(2), 222

F3 Words in Sch. 5 para. 44(4) substituted (with effect in accordance with Sch. 8 para. 223 of the amending Act) by Finance Act 2014 (c. 26), Sch. 8 paras. 217(3), 222

F4 Word in Sch. 5 para. 44(5) omitted (with effect in accordance with Sch. 8 para. 223 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 217(4)(a), 222

F5 Sch. 5 para. 44(5)(c) and word inserted (with effect in accordance with Sch. 8 para. 223 of the amending Act) by Finance Act 2014 (c. 26), Sch. 8 paras. 217(4)(b), 222

F6 Sch. 5 para. 44(5A) inserted (with effect in accordance with Sch. 8 para. 223 of the amending Act) by Finance Act 2014 (c. 26), Sch. 8 paras. 217(5), 222

F7 Sch. 5 para. 44(8)-(10) inserted (with effect in accordance with Sch. 8 para. 223 of the amending Act) by Finance Act 2014 (c. 26), Sch. 8 paras. 217(6), 222

Correction of notice by Inland Revenue U.K.

45 (1) [F1 An 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 [F1 an 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 [F1 an officer of Revenue and Customs] rejecting the correction.

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)

Notice of enquiry U.K.

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

(2) [F1 An officer of Revenue and Customs] may enquire into the option if [F8 the officer] [F9 gives] notice to the employer company of [F10 the officer's] intention to do so in accordance with this paragraph.

(3) [F1 An 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 [F11 the officer] [F9 gives] that individual notice of [F10 the officer's] intention to do so in accordance with this paragraph.

(4) [F1 An 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 [F1 an officer of Revenue and Customs] [F12 discovers] 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

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)

F8 Words in Sch. 5 para. 46(2) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(x); S.I. 2005/1126, art. 2(2)(h)

F9 Word in Sch. 5 para. 46(2)(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(a)(i); S.I. 2005/1126, art. 2(2)(h); S.I. 2005/1126, art. 2(2)(h)

F10 Words in Sch. 5 para. 46(2)(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(2)(j); S.I. 2005/1126, art. 2(2)(h); S.I. 2005/1126, art. 2(2)(h)

F11 Words in Sch. 5 para. 46(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(y); S.I. 2005/1126, art. 2(2)(h)

F12 Word in Sch. 5 para. 46(6) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(a)(ii); S.I. 2005/1126, art. 2(2)(h)

Completion of enquiry: closure notices U.K.

47 (1) An enquiry under paragraph 46(2) is completed when [F1 an officer of Revenue and Customs] [F13 gives] the employer company a notice— U.K.

(a) informing the company that [F14 the officer] [F13 has] completed [F15 the] enquiry, and

(b) stating [F16 the officer's] decision as to whether the requirements of this Schedule are met in relation to the option.

(2) If [F1 an officer of Revenue and Customs] [F17 concludes] that the requirements of this Schedule are not so met, [F14 the 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 [F1 an officer of Revenue and Customs] [F18 gives] the individual concerned and the employer company a notice—

(a) informing the recipients that [F14 the officer] [F18 has] completed [F19 the] enquiry, and

(b) stating [F20 the 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

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)

F13 Word in Sch. 5 para. 47(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(b)(i); S.I. 2005/1126, art. 2(2)(h)

F14 Words in Sch. 5 para. 47 substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(z); S.I. 2005/1126, art. 2(2)(h)

F15 Word in Sch. 5 para. 47(1)(a) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(3)(h); S.I. 2005/1126, art. 2(2)(h)

F16 Words in Sch. 5 para. 47(1)(b) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(2)(k); S.I. 2005/1126, art. 2(2)(h)

F17 Word in Sch. 5 para. 47(2) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(b)(ii); S.I. 2005/1126, art. 2(2)(h)

F18 Word in Sch. 5 para. 47(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(b)(iii); S.I. 2005/1126, art. 2(2)(h)

F19 Word in Sch. 5 para. 47(3)(a) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(3)(h); S.I. 2005/1126, art. 2(2)(h)

F20 Words in Sch. 5 para. 47(3)(b) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(2)(k); S.I. 2005/1126, art. 2(2)(h)

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

48 (1) An application may be made [F21 to the tribunal] under this paragraph for a direction requiring [F1 an 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.

F22 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F23 (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) [F24 The tribunal] must give a direction unless F25 ... satisfied that [F1 an officer of Revenue and Customs] [F26 has] reasonable grounds for not giving a closure notice within a specified period.

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)

F21 Words in Sch. 5 para. 48(1) inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 353(2)

F22 Sch. 5 para. 48(3) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 353(3)

F23 Sch. 5 para. 48(4) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 353(4)

F24 Words in Sch. 5 para. 48(5) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 353(5)(a)

F25 Words in Sch. 5 para. 48(5) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 353(5)(b)

F26 Word in Sch. 5 para. 48(5) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(c); S.I. 2005/1126, art. 2(2)(h)

Effect of enquiry U.K.

49 (1) If [F1 an officer of Revenue and Customs] [F27 does] 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 [F1 an officer of Revenue and Customs] [F27 does] give a notice of enquiry, [F28 the 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 [F28 the 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

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)

F27 Word in Sch. 5 para. 49(1)(2) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 124(d); S.I. 2005/1126, art. 2(2)(h)

F28 Words in Sch. 5 para. 49(2)(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(2)(l); S.I. 2005/1126, art. 2(2)(h)

Appeals U.K.

50 (1) The employer company may appeal against a decision of [F1 an 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 [F1 an 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 [F1 an officer of Revenue and Customs] within 30 days after the date when the closure notice is given to the appellant.

F29 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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)

F29 Sch. 5 para. 50(4) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 354