01 Jun 2018

EMI - Business as usual

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HMRC yesterday issued a further bulletin confirming that Enterprise Management Incentive (EMI) arrangements will continue to operate in the same way as described in HMRC’s current guidance and practice.

The HMRC Bulletin can be found here.

Companies who delayed granting options following the expiration of EU State Aid approval on 6 April 2018 can now go ahead and make grants knowing that valid EMI Options will be eligible for tax relief.

Those companies who granted EMI Options between 7 April 2015 and 15 May 2018 now have confirmation that those EMI Options will benefit from tax relief, if validly granted and exercised.

So it is back to normal for EMI Options. Whilst EU State Aid has been expressed to apply for another five years, it will run out when the UK ceases to be a member state.

Our previous alerts on EMI status can be found here and here.

If you already use EMI Options or would like to discuss whether EMI Options would be a suitable incentive arrangement for your organisation, please get in touch with us.

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KEY CONTACT

Barbara Allen

Barbara Allen
Partner

T:  +44 20 7809 2231 M:  +44 7771 531 553 Email Barbara | Vcard Office:  London

Anika Chandra

Anika Chandra
Senior associate

T:  +44 20 7809 2104 M:  +44 7825 848 162 Email Anika | Vcard Office:  London