Income Tax (Earnings and Pensions) Act 2003 section Schedule 5 paragraph 20

Excluded activities: property development

Section Schedule 5 paragraph 20 supplements the definition of property development as an excluded activity for the purposes of the enterprise management incentives (EMI) share option scheme rules.

• Property development means developing land with the main aim of making a profit from selling an interest in that land once developed.
• The company carrying out the development must have, or have had at some point, an interest in the land being developed.
• An interest in land covers a broad range of rights, estates and interests in or over land, including conditional rights to acquire such interests.
• Interests held by secured creditors, such as mortgages and charges over land, are excluded from the definition of an interest in land.