Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 38

Non-assignability of rights

Schedule 5 paragraph 38 sets out the restrictions on transferring rights under an EMI share option and the time limit for exercising the option after the holder's death.

• The terms of an EMI option must prohibit the option holder from transferring any of their rights under the option to another person.
• EMI options are personal to the individual to whom they are granted and cannot be assigned, sold or otherwise passed on during the holder's lifetime.
• If the option terms allow exercise after the holder's death, there is a strict time limit of one year from the date of death within which the option must be exercised.
• Any option not exercised within one year of the holder's death will lapse and can no longer be used.