EMI share options - tax advantages confirmed

1 min

Posted on 16 May 2018

HM Treasury has confirmed that the tax advantages available to option holders in EMI schemes will continue, after EU State Aid approval was granted on 15 May.  

Why was there doubt that EMI tax advantages would continue? 

Under the scheme, employees of SMEs benefit from reductions to tax and/or national insurance contributions when exercising their share options. Previous EU State Aid approval expired on 6 April 2018, casting doubt on whether tax advantages would be available for EMI options granted from 7 April 2018 onwards. 

The granting of EU State Aid approval means that options granted from 7 April 2018 will qualify for these tax advantages.

HM Treasury’s confirmation of State Aid approval is good news as it gives the green light to continue with the implementation and operation of EMI plans. However, the Commission has indicated that its approval only applies whilst the UK continues to be a member of the EU.     

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