Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 2

Meaning of "the relevant company" and "the employer company"

Schedule 5 paragraph 2 defines two key terms used throughout the EMI code in relation to share options: "the relevant company" and "the employer company".

• The "relevant company" is the company whose shares are subject to the EMI share option.
• The "employer company" is the company that meets the employment requirement for EMI purposes.
• These two companies may be the same entity, but they can also be different companies within a group structure.
• Both definitions tie back to the qualifying conditions for EMI options set out in paragraph 1 of Schedule 5.