EMI options and EU state aid

This was received on 15 May 2018. Under EMI schemes, employees of small and medium sized businesses benefit from reductions in tax and/or national insurance contributions, when exercising their share options.

Many small and medium sized businesses find EMI schemes a useful mechanism to attract and retain talented and skilled personnel and will welcome this endorsement from the Commission. The Commission found that the statutory safeguards, such as a cap on the value of the share options that can benefit from the tax breaks both at employee and employer level, help to ensure that potential distortions to competition are limited. On this basis, the Commission concluded that the measure is in line with EU State aid rules.

Conclusion

This decision applies until the UK leaves the EU. More information will be available on the Commission’s competition website.

To visit our previous blog on EU state Aid and EMI share options click here.