Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 24

Eligible employees: introduction

Paragraph 24 introduces the concept of an "eligible employee" for the purposes of an Enterprise Management Incentives (EMI) share option scheme, setting out the three requirements that must be satisfied at the appropriate time.

• An individual must meet three specific requirements to qualify as an "eligible employee" in relation to the relevant company
• The three requirements relate to employment status, commitment of working time, and not having a material interest in the company
• All three requirements must be met at the appropriate time — it is not sufficient to satisfy only some of them
• The detailed rules for each requirement are set out in subsequent paragraphs of the Schedule