HMRC announcement on EMI options

HMRC have announced that the EU State Aid approval for the EMI scheme expires on the 6^th April 2018.

The UK Government has applied to the European Commission, but it is has now been made apparent that it will lapse before new approval is obtained. HMRC considers that the State Aid approval applies to the granting of share options and therefore that share options granted up to and including 6 April 2018 won’t be affected by this lapse in approval. HMRC will, up until the 6^th April 2018, continue to apply its current guidance & practice in relation to employment-related securities options validly granted as EMI share options.

Therefore:

1. EMI share options granted between the period of the 7^th April through until the new EU State Aid approval may not be eligible for the previous tax advantages.
2. Organisations may wish to consider delaying the grant of EMI options until the EU State Aid approval is obtained.

For more information on how this may impact your existing EMI scheme do not hesitate to contact our Corporate Legal department.