SCHEDULES

SCHEDULE 5Enterprise management incentives

Part 8Supplementary provisions

Annual returns

F152

1

This paragraph applies in relation to a company whose shares are (or have been) subject to qualifying options.

2

The company must give to Her Majesty's Revenue and Customs (“HMRC”) a return for each tax year falling (wholly or partly) in the company's qualifying option period.

3

The company's “qualifying option period” is the period—

a

beginning when the first qualifying option to which the company's shares are subject is granted, and

b

ending when the termination condition is met.

4

“The termination condition” is met when the company's shares—

a

are no longer subject to qualifying options, and

b

will no longer become subject to qualifying options.

5

The return for a tax year must—

a

contain, or be accompanied by, such information as HMRC may require, and

b

be given on or before 6 July in the following tax year.

6

The information which may be required under sub-paragraph (5)(a) includes (in particular) information to enable HMRC to determine the liability to tax, including capital gains tax, of any person who has been granted a qualifying option to which the company's shares are subject.

7

If the company becomes aware that—

a

anything which should have been included in, or should have accompanied, a return for a tax year was not included in, or did not accompany, the return,

b

anything which should not have been included in, or should not have accompanied, a return for a tax year was included in, or accompanied, the return, or

c

any other error or inaccuracy has occurred in relation to a return for a tax year,

the company must give an amended return correcting the position to HMRC without delay.

F152A

1

A return under paragraph 52, and any information accompanying the return, must be given electronically.

2

But, if HMRC consider it appropriate to do so, HMRC may allow a company to give a return or any accompanying information in another way; and, if HMRC do so, the return or information must be given in that other way.

3

The Commissioners for Her Majesty's Revenue and Customs—

a

must prescribe how returns and accompanying information are to be given electronically;

b

may make different provision for different cases or circumstances.