David Craddock discusses the tax advantages and consequences of EMIs
Enterprise Management Incentives (EMI) represents the most tax-advantageous employee share scheme incentive ever introduced in the UK. It is an arrangement that does not require tax approval before introduction. It does however only relate to the smaller independent company whose gross assets do not exceed £30 million.
Care must also be taken to ensure that the company’s activities do not represent excluded activities for purposes of EMI.
Instead of a tax approval arrangement there is a grant notification arrangement under which the employing company must inform HMRC when options have been granted.
The original initiative
The EMI initiative was introduced through FA 2000 Sch 14 as an arrangement that operates on a discretionary selective basis and is designed to help smaller higher-risk companies attract and retain key people.
Although companies do sometimes introduce EMI on an all-employee basis...
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David Craddock discusses the tax advantages and consequences of EMIs
Enterprise Management Incentives (EMI) represents the most tax-advantageous employee share scheme incentive ever introduced in the UK. It is an arrangement that does not require tax approval before introduction. It does however only relate to the smaller independent company whose gross assets do not exceed £30 million.
Care must also be taken to ensure that the company’s activities do not represent excluded activities for purposes of EMI.
Instead of a tax approval arrangement there is a grant notification arrangement under which the employing company must inform HMRC when options have been granted.
The original initiative
The EMI initiative was introduced through FA 2000 Sch 14 as an arrangement that operates on a discretionary selective basis and is designed to help smaller higher-risk companies attract and retain key people.
Although companies do sometimes introduce EMI on an all-employee basis...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
