Following HMRC’s unexpected statement on 4 April 2018 in which they announced the expiry of EU State Aid approval for the EMI Scheme as of 6 April
2018, many companies have been advised to defer the grant of any EMI options until such time as the government has secured fresh EU State Aid approval
On 15 May 2018 the period of uncertainty came to an end as it was confirmed that EU State Aid has been renewed until 6 April 2023, meaning that companies
are now once again able to grant share options to employees that will qualify for the tax advantages provided by the EMI scheme. Although renewed
until 6 April 2023, the approval will be subject to the terms of the Brexit withdrawal agreement which will be addressed in due course.
It is expected that the approval will be applied retrospectively to any options granted in the period from expiry to renewal, however, this will not
be confirmed until the formal decision is published and made publicly available. Those companies who have granted any options during this period
in the hope that they will qualify as EMI options will therefore still need to wait before they can be sure whether any further action will need
to be taken.
If you would like more information or would like to discuss your tax affairs in general please don’t hesitate to contact our Tax Partners, Steve Crompton
or Chris Barrington on the details below: