Q&As

When issuing an EMI rollover agreement, do I need to issue a new option certificate or other documentation?

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Published on LexisPSL on 24/03/2017

The following Share Incentives Q&A provides comprehensive and up to date legal information covering:

  • When issuing an EMI rollover agreement, do I need to issue a new option certificate or other documentation?

Although an enterprise management incentives (EMI) option rollover can be documented in different ways, Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003 (Schedule 5) imposes certain requirements that need to be met when doing so.

ITEPA 2003, Sch 5, para 41(2) requires that the optionholder must agree with the relevant acquiring company to release his rights under the old option in consideration of the grant to him of the replacement option. In addition, in order to qualify as an EMI option, the replacement option must take the form of a written agreement between the optionholder and the grantor which meets the requirements of ITEPA 2003, Sch 5, para 37. Therefore, it must state the date on which the re

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