The following Share Incentives guidance note provides comprehensive and up to date legal information covering:
EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth companies to recruit and retain the best talent so they can scale up effectively, and to examine whether more companies should be able to access to the scheme. This suggests that the government may be considering less restrictive eligibility criteria for companies who wish to offer an EMI scheme, therefore potentially increasing the number of companies who qualify to operate EMI schemes. See News Analysis: Spring Budget 2020—Tax analysis.
Enterprise management incentives (EMI) schemes are tax advantageous discretionary share option schemes used widely in the UK. EMI schemes have the potential to provide very generous tax treatment and allow for generous individual awards. However, the EMI legislative requirements are strict and the notification obligation is imperative to ensuring that the EMI tax status is not lost.
This Practice Note details the following:
the notification obligation
the form of notification for options granted prior to 6 April 2014
the form of notification for options granted since 6 April 2014
correction of a notice of grant
working time requirement
HMRC right of inquiry
For a share option (including a replacement option) to be an EMI qualifying option, notice of the option must be
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