Enterprise Management Incentive
Following our recent Muras Matters article on the expiry of EU State Aid approval for the Enterprise Management Incentive (“EMI”) scheme on 6 April 2018 (muras-matters-enterprise-management-incentive-schemes-put-on-hold), it has recently been announced that the EU State Aid approval has been renewed.
Whilst details of the actual EU decision are still awaited, and HMRC have yet to issue a formal statement, companies can now start to consider granting EMI options again. However, until formal confirmation is released a degree of caution should be taken in actually implementing new EMI option grants yet.
EU state aid approval for UK EMI schemes is only expected to last until the UK leaves the EU, or at the end of any transition period. At that point, the UK government could review the existing EMI scheme and decided to revise it given there will no longer be a requirement to secure EU state aid approval.
If you have any questions regarding the granting of EMI share options, or if you are considering such a scheme whilst the final confirmation of the scheme’s renewal is awaited, please contact our Tax Director, Jenny Marks, for more information.
To see our other news items please visit our Muras Baker Jones – Blog.