EMI options and share valuations
We are proud of the fact that we have long experience of advising clients on share option schemes, and in particular Enterprise Management Incentive (EMI) schemes.
EMI schemes are tax-efficient share option schemes which save tax for both the company and the employee. They are very flexible, but must meet various conditions.
We advise clients on the overall set-up of the scheme, including considerations on the number of shares to allocate for options, the basis on which employees could qualify for options, when the options should vest and other matters. We work with the company's lawyers to ensure that the scheme is drawn up in such a way that it ensures full compliance with the conditions for EMI.
One of the important parts of the EMI process, both when the scheme is established and when subsequent options are to be granted in later years, is determining the market value of the company's shares. We have extensive experience of agreeing valuations with the relevant division at HMRC, thereby providing certainty for both the company and employees. All of our EMI clients appreciate the honest advice we give them about when they do, and perhaps don't, need to go through the formal valuation process with HMRC during subsequent grants of options.
Our service naturally includes taking care of all relevant paperwork required by HMRC, including the notification of grant forms (due within 92 days of granting EMI options) and HMRC form EMI40.
Due to the importance of ensuring that the company continues to meet the conditions under EMI, clients regularly seek our advice in relation to potential changes in their business. We have helped a number of clients avoid doing things which would have lost this valuable tax relief, whilst at the same time still achieving their objectives.
For more detail on how we would work to help you, contact Martin Dunne and Phil Taylor.