Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 28

The "no material interest" requirement

Paragraph 28 of Schedule 5 sets out the requirement that an employee must not have a material interest in the relevant company (or group) in order to be eligible for the enterprise management incentives scheme.

• An individual is disqualified from being an eligible employee if they hold a material interest in the relevant company, or in any member of the group where the company is a parent company.
• A material interest can arise through the individual alone, through the individual together with one or more associates, or through any associate acting alone or with other associates.
• The definition of "material interest" is further detailed in separate provisions (paragraphs 29 and 30 of Schedule 5).
• The definition of "associate" is set out separately (paragraph 31 of Schedule 5, read with paragraphs 32 and 33).