27th June 2012
Following our earlier news item looking at proposed changes regarding Enterprise Management Incentives, we are pleased to confirm that the increase in the individual limit for EMI options from £120,000 to £250,000 was brought into effect on 16 June 2012. This means that, on or after 16 June 2012, EMI options can be granted over shares with an aggregate market value at the date of grant of £250,000.
For example, an employee currently holding EMI options over shares with a value at the date of grant of £100,000 will be eligible to be granted further EMI options over shares with a value at the date of grant of up to £150,000.
There has been no confirmation as yet on the status of the proposed extension of entrepreneurs’ relief to shares acquired on the exercise of EMI options, and the relaxation of the 5% shareholding limit. If this goes ahead, it is expected that this will be brought into force on the date on which the Finance Bill receives Royal Assent, which is likely to be in late July 2012. We shall let you know once we have clarification of the position regarding this proposal.
If you or your clients would like to discuss any of these issues please contact:
Robert Postlethwaite firstname.lastname@example.org
David Reuben email@example.com
Stephen Chater firstname.lastname@example.org
Judith Harris email@example.com