SPL’s Budget Representations on EMI – October 2004

Representations of the Share Plan Lawyers to the Inland Revenue suggesting amendments to the EMI legislation to make its operation fairer in particular:

(a) prior approval by the Inland Revenue for the proposed grant of EMI options where requested;

(b) amending the definition of control in section 840 ICTA 1988 to allow the independence requirement to be satisfied where over 50% of a company’s share capital is held by one or a series of limited partnerships which hold their shares through a corporate general partner which acts as a nominee for the limited partnerships;

(c) amending the control test to allow it to be satisfied where shares are held by a corporate trustee or investment holding company;

(d) replacing the gross assets test with a net assets test; and

(e) amending the definition of replacement shares to include loan notes issued by an acquiring company.

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Keywords: EMI, EMI disqualifying event, EMI qualifying company, HMRC compliant plans, Independence requirement, Reorganisation
Categories: Document archive, HMRC compliant plans