ETASSUM52200 - Enterprise Management Incentives (EMI): Excluded activities: providing legal or accountancy services

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

The legislation excludes providing legal or accountancy services.

‘Legal services’ covers any services customarily provided by members of the legal profession, including the provision of legal advice and the drawing up of contracts and other documents.

‘Accountancy services’ covers any services customarily provided by qualified accountants, including the provision of tax advice and the preparation of tax returns.

In the case of Castleton Management Services Ltd v Kirkwood (SpC 276) [2001], relating to the Enterprise Investment Scheme, but equally applicable to EMI, the company’s activity was to supply the service of accountants. It was decided that the trade of supplying an accountant is within the supply of accountancy services and is not a qualifying trade.