EMI points in HMRC’s October employment related securities bulletin

Fri 09 Nov 2018

HMRC’s October employment related securities bulletin contains a couple of interesting points concerning EMI (enterprise management incentives) schemes.  These are summarised below.

For a further discussion of the tax and administrative issues of EMI and other employee share schemes, please get in touch with a member of the Mazars employment tax team.

EMI options granted between 7 April 2018 and 15 May 2018

“HMRC will treat share options granted between 7 April 2018 and 15 May 2018 as continuing to receive the tax advantages offered by EMI. Furthermore, HMRC will waive the 3 year limit in relation to any cancelled options should a company which issued share options during this period, wish to cancel those options and start again.”

Exercisability of EMI options after a person’s death

“If the intention is for the EMI option to be capable of being exercised after the person’s death, this provision must be written into the EMI option agreement at the date of grant…..Option agreements which allow for options to be exercised for a longer period than 12 months after a person’s death, do not meet the requirements of the legislation to be qualifying EMI options.”

This is a further indication that HMRC are toughening their stance on defective EMI documentation.