The enterprise management incentives scheme (EMI) is a highly flexible and tax-efficient scheme designed specifically for small/medium-sized companies. EMI schemes, which were first introduced under the Finance Act 2000 are one of the most popular of the share option schemes available to companies.
The legislation which governs EMI options consists of:
sections 527–541 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), and
ITEPA 2003, Sch 5 Pt 1–Sch 5 Pt 8
The EMI regime is prescriptive and sets out numerous requirements that must be met at the time the options are granted, including in relation to:
the company granting the options
the employees that are being granted the options
the shares being placed under option, and
the options themselves
This subtopic provides a detailed analysis of the EMI qualifying criteria and includes the precedent documents required in order to seek information from the client and confirmation from HMRC in respect of whether the company qualifies to grant EMI options.
The EMI company
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