Q&As

Can an enterprise management incentives (EMI) option holder claim entrepreneurs' relief in relation to the sale of shares resulting from the exercise of an EMI option if a disqualifying event has previously occurred?

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Published on LexisPSL on 30/11/2018

The following Share Incentives Q&A provides comprehensive and up to date legal information covering:

  • Can an enterprise management incentives (EMI) option holder claim entrepreneurs' relief in relation to the sale of shares resulting from the exercise of an EMI option if a disqualifying event has previously occurred?

Can an enterprise management incentives (EMI) option holder claim entrepreneurs' relief in relation to the sale of shares resulting from the exercise of an EMI option if a disqualifying event has previously occurred?

Entrepreneurs' relief (ER) is a reduced rate of capital gains tax (CGT) that individuals or trustees, but not companies, can claim when they dispose of business assets. Certain conditions must be met before the relief will apply. The effect of the relief is to reduce the rate of CGT on the disposal of assets to 10% on a lifetime limit (on disposals after 6 April 2011) of gains of up to £10m.

For details of the qualifying conditions for ER, see Practice Note: CGT—entrepreneurs' relief.

The sale of shares acquired pursuant to enterprise management incentives (EMI) options exercised on or after 6 April 2013

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