Business owners are being advised to consider the impact of HMRC’s recent announcement
Business owners are being advised to consider the impact of HMRC’s recent announcement relating to EMI schemes and the related tax implications.
On 4 April 2018, HMRC announced that there is to be a temporary expiration of EU State Aid approval for EMI Schemes, which came into effect at 11pm on Friday 6 April 2018. At this time, the length of the delay is unknown.
Whilst any options granted before this deadline will remain unaffected, an important point of note is that those granted after this date, and prior to State Aid approval being received, may not be eligible for the tax advantages that would usually be afforded to EMI options and may as a result be taxed as unapproved (and non-tax advantaged) share options.
HMRC has advised that any companies planning to grant EMI options should postpone until a further announcement is made.
If you are planning to grant EMI options or you are in the midst of putting a scheme in place in the near future, contact our Tax team for guidance or to discuss the implications of this announcement.
A copy of the full HMRC announcement can be found here.