Posted by Katharine Mortimer, Partner
EMI options: amends to commitment of working time and disqualifying events
We are pleased to report that on 26 June, the Government tabled an amendment to Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 which will come as a relief to companies with EMI Schemes and holders of EMI options.
The new clause amends the rules relating to commitment of working time and disqualifying events for enterprise management incentives (EMI) options. The amendments are intended to ensure that:
- when calculating an employee’s “committed time” before granting an EMI option, any time when the employee is not required to work for reasons connected with Covid-19 is counted as working time; and
- a disqualifying event does not occur in relation to an individual as regarding an EMI Option as a result of the individual taking leave, being furloughed or working reduced hours because of Covid-19.
The modifications will have effect in relation to the period from 19 March 2020 to 5 April 2021.
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