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Call for evidence on EMI

The enterprise management incentive (EMI) is a tax-advantaged share option scheme that allows companies to grant options over shares to key employees. The main advantage of the scheme is that the employee will pay an exercise price set at the date of the option (usually the market value), with the hope that the shares will have increased in value by the time the option is actually exercised. Usually, where less than market value is paid for employment related securities, the difference is subject to income tax. However, if the options are exercised correctly under EMI no income tax arises, and instead any growth in the share value above the exercise price is taxed to CGT when the shares are eventually sold.
 
The government has now issued a call for evidence from organisations and individuals, seeking answers to a number of questions to establish how the scheme is working, and whether (and how) it should be expanded so that more companies can use it. The closing date is 26 May 2021. Responses to the queries raised need to be sent to emiconsultation@hmtreasury.gov.uk.
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Added By: Sharon Worger on 13th May 2021 - 17:07
Number of Views: 37
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