The European Commission has today confirmed its approval under EU State aid rules for the continuation of the UK Enterprise Management Initiative (EMI) tax reliefs. We are expecting more detail to follow and will provide a further update as soon as this is possible.
EMI options provide relief against income tax on option gains arising from growth in the value of shares from the date of option grant until exercise. Instead, capital gains tax is charged and only when the shares are eventually sold. For further information about EMI options, please click here. Since HMRC announced that approval had not been renewed following its expiry on 6 April 2018, there has been uncertainty about the tax status of EMI options going forward. This announcement will be welcome to all companies that are considering the grant of EMI options.