EMI—HMRC annual return

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • EMI—HMRC annual return
  • The EMI annual return form
  • Pre-registration and timing of completion of the annual return
  • Reportable events
  • Adjustment of options
  • Replacement of options
  • Options released, lapsed or cancelled
  • Non-taxable exercise of options (section 5)
  • Taxable exercise of options
  • Nil returns
  • More...

EMI—HMRC annual return

This Practice Note details the following:

  1. the EMI annual return form

  2. the pre-registration and timing of completion of the annual return

  3. reportable events

  4. nil returns

  5. unapproved options

  6. penalties for non-compliance

  7. employee's self-assessment obligation, and

  8. obtaining further information

The EMI annual return form

Any company whose shares are the subject of enterprise management incentives (EMI) options at any time during a tax year is required to submit an annual return in respect of the EMI options to HMRC. The EMI legislation requires that such annual returns should be completed for each tax year falling (wholly or partly) in the company's qualifying option period, being the period:

  1. beginning when the first qualifying option to which the company's shares are subject is granted, and

  2. ending when the company's shares are no longer subject to qualifying options, and will no longer become subject to qualifying options

Nevertheless, HMRC has also indicated that, once a scheme is registered with HMRC on the employment related securities (ERS) online service and remains live, there is a continuing obligation to submit an online annual return in respect of it until its registration has been closed.

Unless HMRC allows a person to give a return or accompanying information in another way, the EMI annual return and accompanying documentation must be provided electronically. The online form and supporting guidance notes can be accessed from here. In

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