EMI Administration Simplification

The recent budget saw some welcomed simplification to the strict rules that need to be adhered to for Enterprise Management Incentive(EMI) options to qualify for the generous tax breaks provided by the scheme.

The upcoming EMI changes are:

  • From 6 April 2023:
    • The requirement for the option agreement to list the restrictions on the underlying shares will be abolished. This will also apply to existing options that have not been exercised by that date.
    • The requirement for there to be a working time declaration will be abolished, although the underlying working time requirement will remain.
  • From 6 April 2024, the deadline for notifying HMRC of the grant of an EMI option (currently 92 days) will be extended to 6 July following the end of the tax year in which the options are granted.

These welcomed changes to remove some potential administrative pitfalls will reduce the loss of the intended tax advantages which EMI offers. However, it is still important that companies monitor ongoing compliance with all the requirements to be qualified for EMI options.

If you would like more information on these changes, or the EMI scheme generally, please contact Martin Adams at martin.adams@ballardsllp.com.

This insight was contributed to by Martin Adams – Corporate Tax Partner and Chi Duong – Corporate Tax Associate.


This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated with us.

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