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This week the European Commission announced that it’s renewing state aid approval of the UK Enterprise Management Incentives scheme (EMIs) which was originally approved in 2009.
The previous approval expired on 6 April 2018 and created confusion in the market as to the future of EMIs, especially in light of Brexit.
Ordinarily, the renewal period would last until 6 April 2023, however, the Commission has stated that the renewal will only apply until the UK ceases to be a member state of the EU.
The Commission recognised the importance of EMIs and reiterated that the renewal would allow UK SMEs to recruit and retain employees, and thus enable growth without unduly distorting competition in the single market.
This is good news for UK SMEs, who, whilst riding the wave of Brexit, can now proceed with confidence in granting further EMI options and incentivising their employees in a tax efficient manner and help support the growth and prosperity of UK businesses over the coming years.
All that remains is for the official acknowledgement and confirmation from HMRC, which is expected shortly.
How We Can Help
Our specialist Corporate team have extensive experience in dealing with employee option schemes, including EMIs, so if you would like to speak to a solicitor about implementing an EMI option scheme for your company, please contact us on 0161 941 4000 or email us email@example.com.