On 4 April 2018, HMRC announced that there is to be a temporary expiration of EU State Aid approval for EMI Schemes, which came into effect at 11pm on Friday 6 April 2018. At this time, the length of the delay is unknown.
Whilst any options granted before this deadline will remain unaffected, an important point of note is that those granted after this date, and prior to State Aid approval being received, may not be eligible for the tax advantages that would usually be afforded to EMI options and may as a result be taxed as unapproved (and non-tax advantaged) share options.
HMRC has advised that any companies planning to grant EMI options should postpone until a further announcement is made.
If you are planning to grant EMI options or you are in the midst of putting a scheme in place in the near future, contact our Tax team for guidance or to discuss the implications of this announcement.
A copy of the full HMRC announcement can be found here.
This information should not be regarded as financial advice. This is based on our understanding in April 2018. Laws and tax rules may change in the future. Campbell Dallas is not responsible for content contained on 3rd party sites.