Dilpa Raval and Graham Muir (CMS) explore some of the potential issues that practitioners and companies might encounter when establishing and operating an EMI option plan.
Enterprise management incentive options (EMIs) are the most generous form of tax-advantaged share option and were originally targeted to help new or early stage businesses to attract and retain high calibre individuals. They can be structured so that no income tax or NICs are payable on the exercise of the option; and capital gains tax will be payable only at the entrepreneurs’ relief rate of 10% on the eventual disposal of the underlying shares. That said the EMI legislation contains a number of requirements which are often complex in application. In this article we explore some of the potential issues that practitioners and companies might encounter when establishing and operating an EMI option plan.
Under the EMI legislation (which...
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Dilpa Raval and Graham Muir (CMS) explore some of the potential issues that practitioners and companies might encounter when establishing and operating an EMI option plan.
Enterprise management incentive options (EMIs) are the most generous form of tax-advantaged share option and were originally targeted to help new or early stage businesses to attract and retain high calibre individuals. They can be structured so that no income tax or NICs are payable on the exercise of the option; and capital gains tax will be payable only at the entrepreneurs’ relief rate of 10% on the eventual disposal of the underlying shares. That said the EMI legislation contains a number of requirements which are often complex in application. In this article we explore some of the potential issues that practitioners and companies might encounter when establishing and operating an EMI option plan.
Under the EMI legislation (which...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")