Part 7

Employment income: income and exemptions relating to securities
Chapter 9

Enterprise management incentives

Introduction

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—
  1. in relation to which the requirements of Schedule 5 are met at the time when the option is granted, and
  2. 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.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
S. 527(3)(c) and word omitted (with effect in accordance with Sch. 3 para. 9(4) of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 3 para. 9(3)(b)
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)
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)
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)