EMI Share Options – EU State Aid Approval Expires
HMRC has announced that EU State Aid approval for Enterprise Management Incentive (EMI) share options expired on 6 April, and that options granted from 7 April until state aid approval is received may not therefore be eligible for the tax advantages afforded to the EMI scheme. The options may instead be treated as non-tax advantaged employment related securities options.
EMI options granted up to and including 6 April 2018 will not be affected by this lapse of the approval, but companies may wish to delay the grant of EMI Share options until state aid approval has been granted.
This is clearly an unsatisfactory position, and we don’t yet have guidance on when the approval will be granted. The government assures us that it is working to obtain approval as soon as possible.
If you should have any questions relating to EMI share options, then please do not hesitate to contact Katharine Arthur, Partner and Head of Tax, a member of the Business Tax team, or your usual haysmacintyre adviser.