Tax advantages for EMI share options confirmed
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.
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.
The articles published on this website, current at the date of publication, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your own circumstances should always be sought separately before taking any action.