Enterprise Management Incentive (EMI) share option schemes are designed to assist smaller companies, with gross assets of less than £30m, to attract and retain key employees, incentivise key employees and aid succession planning.
Because there are a number of attractive tax benefits attaching to an EMI share scheme, there are also a number of conditions which must be satisfied. This is an area where, through experience of these schemes and through liasing with H M Revenue and Customs, our team has developed specialist knowledge.
The types of businesses that could qualify for an EMI scheme are clearly defined in the legislation. Excluded activities include: dealing in land, financial activities, leasing or receiving royalties or license fees, and property development.
Our team is able to advise and support throughout the process. Initially, we provide general advice on the drafting of the scheme rules and on qualifying employees. When this is complete we can act on your behalf to take the scheme to the HM Revenue and Customs Share Valuation Division for approval, then submit it to the HM Revenue and Custom once the options are granted.
The EMI scheme is an extremely useful one for those companies which qualify. Our clients use our expert team to make the process as simple and straightforward as possible.