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ETASSUM55040 | Enterprise Management Incentives (EMI): Company reorganisations: Time limits for granting replacement options

From HM Revenue & Customs · Employee Tax Advantaged Share Scheme User Manual

Paragraph 42, Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

The replacement option must be granted within certain time limits:

  • If the reorganisation is by means of a general offer, 6 months after the date on which the person making the offer has obtained control of the company and the offer has become unconditional,

  • If the reorganisation is by means of a compromise or arrangement sanctioned by the court or by means of a qualifying exchange of shares, 6 months after the date on which the acquiring company obtains control of the old company, or

  • If the reorganisation occurs when the acquiring company is bound or entitled to acquire shares, the period during which the acquiring company remains bound or entitled.