Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 20B

Excluded activities: producing coal

Paragraph 20B defines what is meant by coal production for the purposes of the excluded activities rules in the enterprise management incentives (EMI) share option scheme provisions.

• This paragraph supports and supplements paragraph 16(ib), which lists producing coal as an excluded activity for EMI purposes.
• The definition of "coal" follows the meaning set out in article 2 of Council Regulation (EC) No. 1407/2002, which deals with state aid to the coal industry.
• The production of coal is defined broadly to include the extraction of coal.
• Companies whose trade consists wholly or substantially of producing coal will not qualify for EMI share option tax advantages.