Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 22

Excluded activities: nursing homes and residential care homes

Schedule 5 paragraph 22 defines what constitutes a nursing home and a residential care home for the purposes of excluded activities under the enterprise management incentives (EMI) scheme, and sets out the ownership or occupation condition that must be met for these activities to be treated as excluded.

• A nursing home is an establishment that exists wholly or mainly to provide nursing care for people suffering from sickness, injury or infirmity, or for women who are pregnant or have given birth.
• A residential care home is an establishment that exists wholly or mainly to provide residential accommodation with board and personal care for people who need such care due to old age, disability, substance dependence, past illness or mental disorder.
• Running a nursing home or residential care home only counts as an excluded activity if the person concerned holds an estate or interest in, or is in occupation of, the home in question.
• These definitions determine whether a company's trade involves excluded activities, which would prevent it from qualifying for EMI share option tax relief.