0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

more Enterprise Management Incentive (“EMI”) options? yes please!

29 June 2012

HMRC-approved EMI options have been a popular tax-efficient way of incentivising key employees for a good few years now but, until recently, an employee could not hold unexercised options over shares with a total market value (taken at the date of grant) of more than £120,000. To many of us that may sound like a pretty high cap, but could it have been forcing some employers to find alternative (more aggressive?) tax-efficient ways of incentivising staff?

Following State Aid approval, the maximum cap has now more than doubled to £250,000 for EMI options granted on or after 16 June 2012, exactly as promised at this year’s Budget (and with no hidden catches!). This is great news for option holders.

If only the same was true of the changes to the Entrepreneurs’ Relief conditions for EMI option holders introduced by the Budget. Although they initially sounded promising, in practice they are unlikely to benefit many employees with standard “Exit only” options.

related opinions

Election implications for IR35

Draft legislation has already been produced to replicate the 2017 IR35 changes within the public sector and extend these to medium and large private sector organisations, with the final legislation previously expected this month.

View blog

Legal fees for advising on settlement agreements

When entering into a settlement agreement, it is a requirement for the employee to get independent legal advice on the terms and effect of the agreement.

View blog

Would you work for free?

The gender pay gap continues to make headlines but disparities in pay for disabled workers is given significantly less attention.

View blog

Annual Injury and Ill-Health Statistics for Great Britain: still too high?

The Health and Safety Executive (HSE) has released its annual report detailing the number of injuries and incidents of ill-health in workplaces across Great Britain, and its statistics show that this number is too high.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up