Mon 27 Mar 2023

2023 Changes to the Enterprise Management Incentive (EMI) Option Grant Process

Andrew Walker and Robbie Jessiman examine the recent changes to the Enterprise Management Incentive (EMI) Option Grant Process.

What are the recent changes and how do they impact my company's EMI scheme? 

In the Spring Budget 2023 the Chancellor has announced some changes to the process for granting share options under EMI schemes. The purpose of the changes is to simplify the process to make it easier for companies to manage or put in place new EMI schemes.  This is to be welcomed.

More specifically, from 6 April 2023, EMI share option agreements that companies enter into will no longer be required to:-

  • declare that an employee (who has been granted an EMI option) has signed a working time declaration, or
  • set out the details of the restrictions that will apply to the shares that will be acquired upon exercise of the EMI share option.

In addition, for EMI options granted from 6 April 2024, the deadline for companies to notify HMRC of the grant of an EMI option will be changed from 92 days following the date of the option grant to a fixed date of 6 July following the end of the tax year in which the EMI options were granted. This deadline will coincide with the notification deadline for submission of Employment Related Securities (ERS) annual returns and thus streamline EMI reporting requirements and make it easier for companies to manage their EMI schemes.

Companies will no doubt appreciate the introduction of these less onerous EMI requirements and benefit from the simplification of the process.

If you would like to consult us at Morton Fraser MacRoberts for any advice required in relation to EMI share options, please do not hesitate to contact our team.

Make an Enquiry

From our offices we serve the whole of Scotland, as well as clients around the world with interests in Scotland. Please complete the form below, and a member of our team will be in touch shortly.

Morton Fraser MacRoberts LLP will use the information you provide to contact you about your inquiry. The information is confidential. For more information on our privacy practices please see our Privacy Notice