Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 3

General requirements: introduction

Schedule 5 paragraph 3 introduces the general requirements that must be satisfied for a share option to qualify under the Enterprise Management Incentives (EMI) scheme.

• A share option must meet all the general requirements at the appropriate time to be a qualifying option.
• The purpose for granting the option must satisfy the conditions set out in paragraph 4.
• The maximum entitlement of an individual employee must comply with the limits in paragraphs 5 and 6.
• The total value of the relevant company's shares under unexercised options must not exceed the limit in paragraph 7.