Section 527 — Income Tax (Earnings and Pensions) Act 2003: Enterprise management incentives: qualifying options

Enterprise management incentives: qualifying options 527 1 This Chapter provides—

a for share options notified to an 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, and b Schedule 5, ... c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . together constitute “the EMI code”.

4 In the EMI code— “ qualifying option ” means a share option—

in relation to which the requirements of Schedule 5 are met at the time when the option is granted, and 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.