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

unexpected Christmas cheer for Enterprise Management Incentive (EMI) option holders

12 December 2012

The draft consultation Finance Bill 2013 was published yesterday. As expected, it removes the requirement for the seller of shares acquired via an EMI option to hold at least 5% of the ordinary shares/voting rights in order to claim entrepreneurs’ relief (ER). Whilst any relaxation of the rules is always welcome, we didn’t think this would help many option holders in practice.

The Bill unexpectedly goes further though by also removing the requirement for the EMI shares to have been owned throughout the 12 months before the sale. If the usual trading/employment tests are met, EMI shares sold from 6 April 2013 (or 6 April 2012 in certain circumstances) could now be eligible for ER – reducing CGT to 10% – provide the option was granted more than 1 year pre-sale.

If the draft legislation isn’t amended, this is fantastic news for the many EMI option holders whose options are exercisable immediately before a company share sale. A hidden legislative change which is positive? Whatever next?

related opinions

SFO fail to secure individual criminal convictions following Deferred Prosecution Agreement

On 16 July 2019 the Serious Fraud Office released details of the Deferred Prosecution Agreement reached with Sarclad Ltd in July 2016.

View blog

FCA whistleblowing review

The FCA are encouraged to find that the implementation of the new rules has encouraged financial institutions to manage whistleblowing cases and concerns fairly, consistently and in a manner that protects the individual whistleblower.

View blog

Employer's beware: Government announces changes to IR35

The Chancellor, Phillip Hammond, has just delivered his latest budget and with it, a significant change to the way liability for IR35 breaches will be dealt with for private sector companies from April 2020.

View blog

Financial Conduct Authority launch regulatory investigation into TSB

The FCA, the UK’s banking regulator, has launched an investigation into the latest banking crisis to affect members of the public, namely TSB customers.

View blog

mailing list sign up

Select which mailings you would like to receive from us.

Sign up