EMI share options granted on or after 7 April 2018 may not be eligible for tax advantageous treatment.
EU State Aid approval for the EMI scheme expired on 6 April 2018 and fresh approval has not yet been obtained. HMRC has stated that, in their view, EMI share options granted up to and including 6 April 2018 will not be affected and should still be capable of being exercised by employees free from income tax/national insurance contributions. But EMI share options granted in the period between 7 April 2018 until further EU State Aid approval is received may fall to be treated as non-tax advantaged share options.
The Government has confirmed it is working hard to ensure that a fresh EU State Aid approval is obtained as soon as possible. Accordingly, if commercially practicable, companies may want to defer further grant of EMI share options until after fresh EU State Aid approval has been received.
We will provide an update as and when further information is available. In the meantime, if you require further assistance, please contact Emma Bailey, or your usual Fox Williams contact.