SCHEDULES

SCHEDULE 24EMI options and entrepreneurs' relief etc

Identification of shares acquired under EMI option

4

(1)

Section 106A (identification of securities for capital gains tax purposes) is amended as follows.

(2)

In subsection (5)—

(a)

omit the “and” after paragraph (a),

(b)

after paragraph (a) insert—

“(aa)

with securities acquired by him within that period which are not relevant EMI shares, rather than with securities acquired by him within that period which are relevant EMI shares; and”, and

(c)

at the beginning of paragraph (b) insert “ subject to paragraph (aa), ”.

(3)

After subsection (6) insert—

“(6A)

Subject to subsections (4) and (5) above, a company's shares which are disposed of shall be identified—

(a)

with relevant EMI shares, rather than with other shares, and

(b)

with relevant EMI shares acquired at an earlier time rather than with relevant EMI shares acquired at a later time.

(6B)

No shares identified with relevant EMI shares by virtue of subsection (6A)(a) or (b) above shall be regarded as forming part of an existing section 104 holding or as constituting a section 104 holding.”

(4)

In subsection (10), before the definition of “securities”, insert—

“relevant EMI shares” has the meaning given by section 169I(7C) to (7G),”.