Income Tax (Earnings and Pensions) Act 2003 section 533

Disqualifying events

Section 533 provides an overview of the events that count as disqualifying events in relation to a qualifying Enterprise Management Incentives (EMI) option, and directs the reader to the sections where they are described in detail.

• Disqualifying events are specific circumstances that can cause a qualifying EMI option to lose its tax-advantaged status.
• Three categories of disqualifying event exist: those relating to the relevant company, those relating to the employee, and other disqualifying events.
• "The employee" means the person holding the qualifying option, and "the relevant company" means the company whose shares are the subject of the option.
• Supplementary provisions in sections 537 to 539 provide further detail on the rules around other disqualifying events, including alterations of share capital.