2 minute read
HM Revenue and Customs (HMRC) has issued guidance on the inclusion and use of discretions awarded to directors in Enterprise Management Incentive (EMI) share option plans. While this is generally welcome, caution is still needed when drafting and operating EMI share option plans. We have summarised below the key insights, of particular relevance to our growth clients who already have, or are considering implementing, an EMI share option plan.
In summary, if there is any uncertainty, advice should be taken when directors exercise a discretion in an EMI share option plan to ensure EMI tax treatment is preserved.
If you have any questions or would like to discuss, please contact Anna Humphrey.