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Employment related securities bulletin No 27 (April 2018)
HMRC has announced that EU state aid approval for the enterprise management incentive (EMI) scheme expired on 6 April.
The government’s application for fresh approval is with the European Commission. HMRC states the government is ‘working hard to ensure this period is as short as possible’.
EMI share options granted from 7 April until state aid approval is received may therefore not be eligible for the tax advantages afforded to option holders. They may instead be treated as non-tax advantaged employmentrelated securities options.
Companies may wish to consider delaying the grant of EMI share options until fresh state aid approval has been given.
HMRC considers that the granting of share options up to and including 6 April will not be affected by the approval lapsing. It will therefore continue to apply its current guidance and practice in relation to such options.
