Budget 2010 – Enterprise Management Schemes
The rules which govern who can set up a qualifying Enterprise Management Incentive (‘EMI’) scheme are to be changed.
The change will amend the requirement that a company granting qualifying EMI options to its employees must operate “wholly or mainly” in the UK. This is to be replaced with the requirement that the company, or at least one group company in a group of companies, which is carrying on a qualifying trade, need only have a ‘permanent establishment’ for tax purposes in the UK.
The relevant legislation is expected to be introduced in the next Parliament and will have effect in respect of EMI options granted on or after the date that the legislation receives Royal Assent.
The changes are necessary to ensure that EMIs comply with EU State aid guidelines.