Good news for companies and employees with an interest in EMI (Enterprise Management Incentive) share options! The EC has just approved the renewal of State aid approval for such option schemes.
Those who have been following this will know that the last State aid approval expired on 6 April 2018. Accordingly, there was a risk that EMI options granted after that date might lose their tax-advantaged status, so many companies have been delaying the grant of EMI options since that date.
The renewal of the State aid approval means that EMI share options will now continue to be available as a tax-advantaged way of incentivising key employees. Employers can now proceed with intended grants of EMI options that they had been postponing – keeping those eager employees happy.
Implementation of EMI schemes can be complex and it is important to ensure the documentation is carefully drafted and tax advice is taken to ensure they qualify for the relevant tax advantages. For more information on implementation of an EMI scheme please telephone Clare Lang on 01562 820181 or email her at firstname.lastname@example.org.