Companies may wish to consider deferring grants of EMI options until EU State Aid approval has been renewed.
In an announcement made on 4 April 2018, HMRC have stated that there will be a delay between the current State Aid approval of the Enterprise Management Incentives (EMI) regime expiring on 6 April 2018, and renewed approval taking effect. There was no indication as to the expected length of this delay. The announcement also states that EMI options granted on or after 7 April 2018, and prior to renewed State Aid approval being received, may not be eligible for EMI tax reliefs and may therefore be taxed as non-tax advantaged options. Whilst HMRC’s statement is not definitive on the tax position, given the uncertainty, employers may wish to consider deferring proposed grants of EMI options until after renewed State Aid approval has been received.
HMRC have confirmed that, in their view, EMI options granted up to and on 6 April 2018 will be unaffected by the expiry of the current State Aid approval. To read the HMRC announcement, click here.
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