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SCHEDULES

SCHEDULE 5U.K.Enterprise management incentives

Part 8U.K.Supplementary provisions

Power to require informationU.K.

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.

Annual returnsU.K.

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.

Compliance with time limitsU.K.

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.

Power to amend by Treasury orderU.K.

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.

Meaning of “market value” of sharesU.K.

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.

Determination of market value of sharesU.K.

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, [F5the company may apply to the tribunal for the question of the market value of the shares to be determined].

F6(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7(6)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).]

Appeal against determination of market value of sharesU.K.

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.

F8(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minor definitionsU.K.

58U.K.In the EMI code—

Textual Amendments

F9Words in Sch. 5 para. 58 substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(3) (with Sch. 2)

Index of defined expressionsU.K.

59U.K.In the EMI code the following expressions are defined or otherwise explained by the provisions indicated below:

the appropriate timeparagraph 1(4)
arrangementsparagraph 58(1)
child [F10section 721(6)]
close company [F11section 989 of ITA 2007], (and see paragraph 29(4))
closure noticeparagraph 47(4)
companyparagraph 58
company reorganisation (in Part 6 of this Schedule)paragraph 39(2)
connected personsection 718
controlsection 719 (and see paragraphs 10(2) and 23(6))
disqualifying eventsee sections 532 to 539
distribution [F12section 989 of ITA 2007]
earningssection 62 and see section 721(7)
the EMI codesection 527(3)
employee and employmentsection 4
eligible employeeparagraph 24
employer companyparagraph 2
excluded activitiesparagraph 16
farming [F13section 996 of ITA 2007]
F14. . .F14. . .
generally accepted accounting practice [F15section 997 of ITA 2007]
group of companiesparagraph 58
the groupparagraph 58
F16. . .F16...
market valueparagraph 55 (and see paragraph 5(7))
met (in Part 7 of this Schedule)paragraph 44(7)
new optionparagraph 41(7)
notice [F17section 989 of ITA 2007]
[F18offshore installation] [F19sections 1001 and 1002 of ITA 2007]
old optionparagraph 41(7)
ordinary share capital [F20section 989 of ITA 2007]
original optionsection 529(3)
parent companyparagraph 58
personal representative [F21section 989 of ITA 2007]
qualifying companyparagraph 8
qualifying optionsection 527(4) (and see paragraph 41(5))
qualifying subsidiaryparagraph 11
qualifying tradeparagraph 15
relevant companyparagraph 2
replacement optionsection 527(4)
the requirements of this Schedulesection 527(4)
research and developmentparagraph 58
share optionsection 527(4)
sharesparagraph 58 (and see paragraph 40(4)(a))
single companyparagraph 58
F22. . .F22. . .
51% subsidiary [F23section 989 of ITA 2007]
tax [F24section 989 of ITA 2007]
tax year [F25section 4(2) of ITA 2007 (as applied by section 989 of that Act)]
trade [F26section 989 of ITA 2007]
[F27tribunal section 989 of ITA 2007]
United Kingdom [F28section 1013 of ITA 2007]

Textual Amendments

F10Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(a) (with Sch. 2)

F11Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(b) (with Sch. 2)

F12Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(c) (with Sch. 2)

F13Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(d) (with Sch. 2)

F15Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(e) (with Sch. 2)

F17Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(f) (with Sch. 2)

F18Words 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)

F19Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(g) (with Sch. 2)

F20Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(h) (with Sch. 2)

F21Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(i) (with Sch. 2)

F23Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(j) (with Sch. 2)

F24Words in Sch. 5 para. 59 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(6) (with Sch. 2)

F25Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(l) (with Sch. 2)

F26Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(m) (with Sch. 2)

F28Words in Sch. 5 para. 59 Table substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 450(4)(n) (with Sch. 2)