How EMI schemes work and key features
How EMI schemes work and key features

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

  • How EMI schemes work and key features
  • What are EMI options?
  • The law governing EMI options
  • EMI options, EU State aid approval and Brexit
  • Eligibility requirements
  • Which companies can grant EMI options?
  • Who can be granted EMI options?
  • Which shares can EMI options be granted over?
  • What must the exercise price be?
  • Are there any limits on the grant of EMI options?
  • More...

EMI Review: In the Spring Budget 2020, the government announced that it will review the enterprise management incentives (EMI) scheme (see News Analysis: Spring Budget 2020—Tax analysis). On 3 March 2021, the government published a call for evidence regarding a possible expansion of EMI schemes. This seeks views on the current EMI scheme to assess the effectiveness of its targeting and whether more companies should be able to access the scheme to recruit and retain the key talent they may need to grow and scale up. For further information, see Enterprise Management Incentives: call for evidence.

The Practice Note covers the following topics and questions:

  1. what are EMI options?

  2. the law governing EMI options

  3. the eligibility requirements:

    1. which companies can grant enterprise management incentives (EMI) options?

    2. who can be granted EMI options?

    3. which shares can EMI options be granted over?

    4. what must the exercise price be?

    5. are there any limits on the grant of EMI options?

  4. when can EMI options be exercised?

  5. when do EMI options lapse?

  6. are there any restrictions in regard to the terms of an EMI scheme?

  7. amending the terms of an EMI option—possible pitfalls

  8. tax treatment of EMI options:

    1. income tax and National Insurance contributions (NICs) treatment

    1. capital gains tax (CGT) treatment of EMI options

  9. disqualifying events

  10. exchange (rollover) of EMI options

  11. valuation of EMI options

  12. advance assurance

  13. notification process

  14. annual

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