ETASSUM51010 - Enterprise Management Incentives (EMI): General requirements: Purpose of granting options

Paragraph 4, Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

In order for an option to be a qualifying option, it must be granted for genuine commercial reasons, to recruit or retain an employee in a company. An option does not qualify if it is granted as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is to avoid tax.