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

Directors who fail to prepare, should prepare to fail

Two recent judgments demonstrate the risk that directors (of insolvent companies) face of being personally liable if appropriate records and procedures are not followed and if it cannot be shown that certain payments were in the interests of the company.

View blog

Changes to the Job Support Scheme

The government has now announced further changes to the Job Support Scheme (now renamed the Job Support Scheme Open), with both the percentage of working hours and the employer contribution to unworked hours dropping.

View blog

The Restriction of Public Sector Exit Payments Regulations 2020

On 14 October 2020, The Restriction of Public Sector Exit Payments Regulations 2020 (the “Regulations”) were made into law and will come into force on 4 November 2020.

View blog

Employers liability for practical jokes in the workplace

The extent of vicarious liability has been tested by the courts again and this time in relation to employees engaging in horseplay and practical jokes.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up