State aid approval renewed for EMI schemes

The European Commission has renewed state aid approval for the UK enterprise management incentive (EMI) scheme. The previous approval expired on 6 April.

In considering the UK government's application for fresh authorisation the commission's assessment found that the prolongation of the measure is necessary to help UK small and medium-sized enterprises attract and retain talented and skilled personnel.

It also found that the scheme contains several safeguards such as a cap on the value of the share options that can be subject to the tax advantage both at the employee and employer level ensuring that potential distortions to competition are limited. On this basis the commission concluded that the measure is in line with EU state aid rules.

Patrick Billyeald partner at gunnercooke LLP said: ‘The commission’s decision to renew its state aid approval for EMI share option schemes is timely and...