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EMI’s restricted to small firms with fewer than 250 employees

Enterprise Management Incentive schemes offering tax advantaged share options to employees are to be restricted to companies with fewer than 250 people.

The measures, announced in the Budget 2008, also increase the individual employee limit on grants of qualifying options from £100,000 to £120,000.

EMIs are tax and National Insurance Contributions (NICs) advantaged share options available to small companies with gross assets not exceeding £30 million.

They are designed to help small, higher risk companies recruit and retain employees. They are also a way of rewarding employees for taking a risk by investing their time and skills to help small companies achieve their potential.

Want to know more?

If you have any questions about this change, please contact HM Revenue and Customs - Chris Murricane on tel: 020 7147 2818 or Ellie Mayor on tel: 020 7147 2822 or by email: shareschemes@hmrc.gsi.gov.uk.

Information about Budget measures is available on the HMRC Revenue & Customs web site at www.hmrc.gov.uk/budget2008/index.htm.

Detailed guidance on EMIs is available at www.hmrc.gov.uk/shareschemes/emi-new-guidance.htm.

Date 26/03/2008

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