ETASSUM52100 | Enterprise Management Incentives (EMI): Qualifying companies: Excluded activities

Paragraphs 16-23, Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

A trade will not qualify if one or more excluded activities together amount to a substantial part of it. Excluded trading activities are:

• dealing in land, commodities or futures, or shares, securities or other financial instruments,

• dealing in goods, otherwise than in the course of an ordinary trade of wholesale or retail distribution (see ETASSUM52110),

• banking, insurance, money-lending, debt-factoring, hire purchase financing or other financial activities (see ETASSUM52190),

• leasing (including letting ships on charter, or other assets on hire) (see ETASSUM52120),

• receiving royalties or other licence fees (see ETASSUM52130),

• providing legal or accountancy services (see ETASSUM52200),

• property development (see ETASSUM52140),

• farming or market gardening (see ETASSUM52210),

• holding, managing or occupying woodlands, any other forestry activities or timber production (see ETASSUM52220),

• shipbuilding, coal and steel production (see ETASSUM52150),

• operating or managing hotels or comparable establishments or managing property used as a hotel or comparable establishment (see ETASSUM52160),

• operating or managing nursing homes or residential care homes, or managing property used as a nursing home or residential care home (see ETASSUM52170), and

• providing services or facilities for another business (see ETASSUM52180).