Companies can once again grant share options under the Enterprise Management Initiative (EMI) scheme, now that approval from the European Commission has been received.
DRG recently advised companies to consider delaying granting employee share options, intended to qualify for tax reliefs under the EMI scheme, until fresh EU State Aid approval has been given. EMI schemes are a form of state aid to companies that grant EMI options – and therefore require approval from the European Commission. The current EU State Aid approval for the EMI scheme had expired on the 6th April 2018 and fresh approval at that time was being sought.
We are pleased to announce that the European Commission has now approved under EU State aid the prolongation of the UK Enterprise Management Initiative scheme (See "State aid: Commission approves prolongation of UK Enterprise Management Initiative scheme"). Therefore, you may now grant EMI share options once again.
Find out more about the EMI scheme
The aim of the EMI scheme is to allow SMEs to attract and retain employees to help them grow. Under EMI employees, when their exercise their share options, can benefit from reductions in income tax and / or national insurance.
Read our fact sheet to find out more about EMI and share ownership for employees.
If you would like to discuss EMI and share ownership for your employees, please do get in touch with the tax team at DRG Chartered Accountants. We would be delighted to hear from you.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.