ERSM304500 - Enterprise Management Incentives: Schedule 5 ITEPA 2003

This Schedule makes provision for establishing what constitutes a qualifying option for the purposes of the EMI code. The schedule consists of eight parts which contain the requirements that have to be met in order for options to be qualifying options. The administration process is dealt with by the Small Company Enterprise Centre, CRI, Ty Glas, Llanishen, Cardiff CF14 5ZG. A new updated version of the ESSUM manual is due to be published in stages from March 2009 and this will include detailed guidance on the way this schedule is interpreted. A brief summary of the legislative requirements follow:

• Part 1 - A brief introduction and definitions of fundamental concepts.
• Part 2 - The general requirements for qualifying options including monetary limits.
• Part 3 - The eligibility requirements for companies to be able to grant qualifying options including definitions of fundamental concepts and limitations on trading activities.
• Part 4 - The eligibility requirements relating to individuals who may qualify for the grant of a qualifying option.
• Part 5 - The requirements relating to the share options and the types of shares that may be acquired.
• Part 6 - The requirements relating to an exchange of options in the circumstances of a company re-organisation.
• Part 7 - The requirement to notify an officer of HMRC within 92 days of the grant of a qualifying option and the general enquiry powers relating thereto.
• Part 8 - The supplementary provisions including the power to require information in relation to the administration of the EMI arrangements and an index of defined expressions.