Emi Share Options: The Complete Guide

EMI Schemes - The Complete Guide written by David Cohen at Norton Rose, one of the acknowledged industry experts in this field. The Enterprise Management Incentive Scheme (EMI) is a highly flexible and tax efficient scheme designed specifically for smaller companies. No tax or NICs are due on the grant or exercise of a qualifying option under the Enterprise Management Incentive as long as the exercise price is not less than fair market value at the date of grant. On sale of the shares acquired through an EMI share option scheme, gains will be taxed as capital gains. At the end of 2012 the Government indicated it will extend capital gains tax entrepreneurs' relief to shares acquired through the exercise of EMI share options. Legislation will be introduced to extend the relief to EMI shares by removing the 5 per cent minimum shareholding requirement and allowing the 12 month minimum holding requirement to commence on the date the option is granted. This measure applies to shares acquired on or after 6 April 2012 that are disposed of on or after 6 April 2013. These measures are guaranteed to make EMI schemes more popular and will increase work in this area for practitioners.
EMI Schemes - The Complete Guide is a highly practical with the extensive use of questions and answers, examples, flowcharts and tables to illustrate the key concepts. Contents: 1. Introduction - explaining the background to EMI and putting in the context of UK employee share schemes generally; 2. Statutory requirements - how a company qualifies for EMI; 3. Statutory requirements - how an individual qualifies for EMI; 4.Statutory requirements - how an option qualifies as an EMI option; 5. Tax Reliefs for EMI options - income tax and NICs dues on unapproved options, EMI reliefs, comparison with other improved schemes; 6.Disqualifying events - what events and what are the tax consequences; 7. CGT treatment of EMI options - a short history; the current advantage EMI holders have over other employee shareholders; 8.Corporation Tax - the relief for grantor or employer; 9. Corporate transactions - impact on EMI options of a takeover of IPO; 10. Share valuation - when will it be needed for EMI options and what special factors may be relevant; 11. Conclusion - impact of recent developments - predicting the future of EMI.

List of contents

1 Introduction 2 How a company qualifies for EMI and the overall limit 3 How an individual qualifies for EMI and the individual participation limits 4 How an option qualifies as an EMI option 5 Tax treatment of EMI options (other than capital gains tax on share sale) 6 Disqualifying events: what they are and how they compare with the qualifying conditions 7 Capital gains tax on disposal of EMI shares 8 Corporation tax relief for the employer 9 Company reorganisations - impact on EMI options of a takeover 10 Interaction with HMRC 11 Company law and employment law aspects Appendix 1 HMRC form EMI1 (notice of EMI option grant) Appendix 2 HMRC form EMI40 (EMI annual return for year ended 5 April 2013) Appendix 3 HMRC form VAL231 (request for a share valuation in connection with EMI) Appendix 4 Checklist of matters that must or may be covered by an EMI share option agreement

About the author

David Cohen is an employee incentives lawyer based in London and is head of the employee incentives group at Norton Rose. He has specialised in the field of employee share ownership for more than 20 years and advises a diverse range of quoted and private companies on all aspects of employee incentives. David has been chairman of the Share Plan Lawyers Group (comprising more than 200 specialists) since he founded the Group in 1988. He is also a member of the Advisory Group set up by the UK Government in March 1999 to work with the Inland Revenue on the development of new employee share schemes

Product details

• Authors: David Cohen
• Publisher: Bloomsbury
• Languages: English
• Product format: Paperback / Softback
• Released: 30.08.2013
• EAN: 9781780432540
• ISBN: 978-1-78043-254-0
• No. of pages: 230
• Subject: Social sciences, law, business > Law > Mercantile and commercial law