In a short press release on 15 May it was announced by the European Commission that state aid approval has been renewed for EMI (Enterprise Management Incentive) schemes, the previous approval having expired on 6 April. This approval is to remain in force until the UK ceases to be an EU Member State.
This news will be welcomed by many companies which have had their EMI option plans on hold while we have been waiting for this decision and which can now proceed with qualifying EMI option grants.
It is currently unclear as to whether share options granted between 7 April and 15 May 2018 will be qualifying, however, the wording of the EU announcement suggests that state aid will be given retrospectively to cover this period. We expect HMRC to clarify this point within the next few days.
EMI share options were introduced under the 2000 Finance Act. They are intended to help smaller independent companies with growth potential to recruit and retain key talent, offering generous tax advantages to both the EMI option holders as well as providing tax advantages to the employing company.
Should have any questions relating to EMI share options, and how the scheme may be of benefit to your company, then please do not hesitate to contact a member of the business tax team, or your usual Ryecroft Glenton adviser.