Karen Cooper answers a query on US companies and EMI options.
Question: A US incorporated company operates a stock option plan for US-based employees which provides for the grant of qualifying stock options (ISOs). It has now opened an office in the UK and has asked if it can grant tax-favoured Enterprise Management Incentives options to its first employee in the UK?
Answer: Enterprise Management Incentives (EMI) options are qualifying options under ITEPA 2003 Part 7 Chapter 9. Options that meet the conditions set out in ITEPA 2003 Sch 5 benefit from favourable income tax treatment.
No income tax or national insurance contributions will be payable on exercise unless the EMI option...
