What has happened?
Yesterday afternoon the European Commission issued a press release announcing that it has now granted state aid approval for the continuance of Enterprise Management Incentive plans (EMI). The announcement ends a period of uncertainty following the EU Commission's failure to approve the renewal of EMI arrangements in the UK, which are subject to the EU State Aid rules, by the expiry date of 6 April 2018.
It is noted that the press release also provides that the Commission's decision only applies until the UK ceases to be a member of the European Union.
The Commission stated in its press release that:
"The Commission's assessment found that the prolongation of the measure is necessary to help UK SMEs attract and retain talented and skilled personnel."
What does this mean?
Companies who delayed the grant of EMI options in the period from 7 April 2018 to ensure eligibility for the EMI tax advantages may now grant those options. Any qualifying EMI options granted from today will be able to benefit from the same EMI tax advantages as before, with the statutory requirements remaining unchanged.
For further information, please contact a member of the Incentives team.