Finance Act 2000

Part IX E+W+S+N.I. Supplementary provisions

Power to require information E+W+S+N.I.

64 (1) The Inland Revenue may by notice require any person to furnish them, within such time as the Inland Revenue may direct (not being less than three months), with such information as— E+W+S+N.I.

(a) the Inland Revenue think necessary for the performance of their functions under this Schedule, and

(b) 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 the Inland Revenue—

(a) to decide whether an 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) In section 98 of the M1 Taxes Management Act 1970 (penalties in connection with returns, etc.), in the first column of the table, after the final entry insert—

“paragraph 64 of Schedule 14 to the Finance Act 2000;”.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Marginal Citations

M1 1970 c. 9.

Annual returns E+W+S+N.I.

65 (1) A company whose shares are the subject of a qualifying option at any time during a tax year must deliver a return to the Inland Revenue. E+W+S+N.I.

(2) The return must—

(a) contain such information as the Inland Revenue may require, and

(b) be made within three months after the end of the tax year to which it relates.

(3) In section 98 of the M2 Taxes Management Act 1970 (penalties in connection with returns, etc.), in the second column of the table, after the final entry insert—

“paragraph 65 of Schedule 14 to the Finance Act 2000;”.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Marginal Citations

M2 1970 c. 9.

Meaning of “market value" of shares E+W+S+N.I.

66 (1) For the purposes of this Schedule the “market value” of shares has the same meaning as, for the purposes of the M3 Taxation of Chargeable Gains Act 1992, it has by virtue of Part VIII of that Act. E+W+S+N.I.

This is subject to paragraph 10(8) (determination of value of shares subject to restriction or risk of forfeiture).

(2) Where the market value of shares on any date falls to be determined for the purposes of this Schedule, the Inland Revenue and the employer company may agree that it shall be determined by reference to such date or dates, or to an average of the values on a number of dates, as may be provided in the agreement.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Marginal Citations

M3 1992 c. 12.

Determination of market value E+W+S+N.I.

67 (1) The market value of shares for the purposes of this Schedule, if not agreed between the employer company and the Inland Revenue or referred to the Commissioners under sub-paragraph (4), shall be determined by the Inland Revenue. E+W+S+N.I.

(2) The employer company may appeal against any such determination.

(3) Notice of appeal must be given to the Inland Revenue within 30 days after their notice of their determination was given to the employer company.

(4) The employer company may, at any time before notice of determination by the Inland Revenue has been given to it, by notice given to the Inland Revenue require the question of the market value of the shares to be referred to the Commissioners.

Any such reference shall be determined by the Commissioners in the same way as an appeal.

(5) An appeal or reference under this paragraph lies to the General Commissioners or, if the employer company so elects (in accordance with section 46(1) of the M4 Taxes Management Act 1970), to the Special Commissioners.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Marginal Citations

M4 1970 c. 9.

Exercise of functions conferred on “the Inland Revenue" E+W+S+N.I.

68 Functions conferred by this Schedule on “the Inland Revenue" may be exercised by any officer of the Board. E+W+S+N.I.

Power to amend by Treasury order E+W+S+N.I.

69 The Treasury may by order amend this Schedule— E+W+S+N.I.

(a) to make such amendments of paragraphs 17 to 26 (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—

paragraph 10(1), (4) and (5) (maximum entitlement of employee), or

paragraph 16(1) and (2) (the gross assets requirement).

Compliance with time limits E+W+S+N.I.

70 (1) For the purposes of this Part and Part I of this Schedule a person is not taken to have failed to do anything required to be done within a limited time if— E+W+S+N.I.

(a) he had a reasonable excuse for not doing it within that time, and

(b) if the excuse ceased, he did it without unreasonable delay after the excuse ceased.

(2) Where sub-paragraph (1)(b) applies any further time limit expressed by reference to the time when the thing should have been done shall have effect as if it had been expressed by reference to the time when it was done.

Minor definitions E+W+S+N.I.

71 (1) In this Schedule— E+W+S+N.I.

• “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;

• “company” means any body corporate;

• “group”, in relation to a parent company, means that company and its 51% subsidiaries;

• “group company”, in relation to a parent company, means that company or any of its 51% subsidiaries;

• “parent company” means a company that has one or more 51% subsidiaries and “single company” means a company that does not;

• “option” means any right to acquire shares;

• “ordinary share capital” has the meaning given in section 832(1) of the Taxes Act 1988;

• “research and development” has the meaning given by section 837A of the Taxes Act 1988;

• “shares” includes stock; and

• “tax year” means a year of assessment.

(2) Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of this Schedule.

Index of defined expressions E+W+S+N.I.

72 In this Schedule the following expressions are defined or otherwise explained by the provisions indicated: E+W+S+N.I.

arrangements	paragraph 71(1)
closure notice (in Part I)	paragraph 5(4)
company	paragraph 71(1)
company reorganisation (in Part VIII)	paragraph 59(2)
connected person	paragraph 71(2)
disqualifying event	paragraphs 47 to 52
eligible employee	paragraph 27
employer company	paragraph 1(3)
excluded activities	paragraph 19
gross assets requirement	paragraph 16
group and group company	paragraph 71(1)
the independence requirement	paragraph 13
the Inland Revenue	paragraph 68
market value	paragraph 66 (and see paragraph 10(8))
new option	paragraph 61(4)
old option	paragraph 61(4)
option	paragraph 71(1)
ordinary share capital	paragraph 71(1)
original option (in Parts VI and VII)	paragraph 56(3)
parent company	paragraph 71(1)
qualifying company	paragraph 12
qualifying option	paragraph 1 (and see paragraph 61(3))
qualifying shares (in Part VII)	paragraph 56
qualifying subsidiary	paragraph 15
qualifying trade	paragraph 18
relevant company	paragraph 1(3)
replacement option	paragraph 61(2)
research and development	paragraph 71(1)
shares	paragraph 71(1) (and see paragraph 60(4))
single company	paragraph 71(1)
tax year	paragraph 71(1)
trading activities requirement	paragraph 17