Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 47

Completion of enquiry: closure notices

Schedule 5 paragraph 47 sets out how HMRC formally concludes an enquiry into an Enterprise Management Incentive (EMI) option and the notification requirements that apply when an enquiry is completed.

• An enquiry into whether the EMI scheme requirements are met is completed when HMRC issues a closure notice to the employer company confirming the enquiry has ended and stating whether the Schedule 5 requirements are satisfied
• If HMRC decides the requirements are not met, the officer must also notify the individual who was granted the option of that adverse decision
• An enquiry into whether an individual meets the working time commitment is completed when HMRC issues a closure notice to both the individual and the employer company, stating the outcome
• A closure notice takes effect immediately upon issue