Enterprise Management Incentive (‘EMI’) is a tax efficient approved share option scheme available to small and medium sized businesses who want to grant share options to key staff.
It has always required EU state aid approval. The existing EU state aid approval for EMI options expires on 6 April 2018 and the government has announced that it has NOT receive a renewal of its state aid approval for this legislation.
The government is continuing to work with the EU to obtain the necessary approvals and it is hoped that there will only be a short period of time until this happens.
The position for now is that EMI options granted up and including 6 April 2018 will continue to benefit from the existing rules. However, options granted from 7 April 2018 until either EU State Aid approval is received OR we are no longer subject to EU rules might not benefit.
Companies may wish therefore to delay any further issues of EMI options until we have an update or consider alternative planning arrangements in the interim period.