We wrote a few weeks ago about how the UK’s EMI option scheme was in a state of flux while we waited for EU State Aid approval to be extended beyond 5 April this year. In summary, there was a strong recommendation that no new EMI options were to be granted until the extension to the State Aid approval was received by the UK government.
Well, good news! In a press release published yesterday by the European Commission, they have confirmed that we yet again have approval for the beneficial state aid that the EMI option scheme provides to UK businesses.
Here is a bit of the blurb from the European Commissions assessment:
‘the prolongation of the measure is necessary to help UK SMEs attract and retain talented and skilled personnel. It also found that the measure contains a number of safeguards, such as a cap on the value of the share options that can be subject to the tax advantage both at the employee and employer level, ensuring that potential distortions to competition are limited. On this basis, the Commission concluded that the measure is in line with EU State aid rules.’
And so it is back to business as usual.
If you do have any questions relating to your EMI option arrangement please get in touch and we will be delighted to help.