Companies advised to put off granting EMI share options

6 April, 2018

The Government has, since last year, been following the process of applying to the European Commission for fresh State Aid approval, and is currently awaiting a response.  However, this response will not be received by 6 April when the current approval expires.

Any EMI options granted in the period from 7 April 2018 until a new EU State Aid approval is received may not be eligible for the tax advantages normally afforded to option holders. That would mean that they did not qualify as tax-advantaged employment-related securities options.

As a result, HMRC are advising companies that they may wish to delay the grant of any EMI share options until a fresh State Aid approval is received.

HMRC’s usual practices will continue to apply to valid EMI options granted before 6 April 2018.

Technical Team

(06-04-2018)