Section 527 Enterprise management incentives: qualifying options

United Kingdom

(1)

This Chapter provides—

(a)

for share options notified to F1an 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, F2and

(b)

Schedule 5, ...

(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

together constitute “the EMI code”.

(4)

In the EMI code—

“qualifying option” means a share option—
1. (a)
  in relation to which the requirements of Schedule 5 are met at the time when the option is granted, and
2. (b)
  which is notified to an officer of Revenue and Customs in accordance with Part 7 of that Schedule;
“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.

Annotations

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: Word in s. 527(3) inserted (with effect in accordance with Sch. 3 para. 9(4) of the amending Act) by Finance Act 2016 (c. 24), Sch. 3 para. 9(3)(a)

F1: 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)

C1: Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)