EMI Share Options: The Complete Guide

ISBN-13: 9781780432540 / Angielski / Miękka / 2013 / 230 str.

David Cohen

Opis

In the UK, the Enterprise Management Incentive (EMI) Scheme is a highly flexible and tax efficient scheme designed specifically for smaller companies. No tax or NICs are due on the grant or exercise of a qualifying option under the EMI as long as the exercise price is not less than fair market value at the date of grant. On sale of the shares acquired through an EMI share option scheme, gains will be taxed as capital gains. At the end of 2012, the UK government indicated it would extend capital gains tax entrepreneurs' relief to shares acquired through the exercise of EMI share options. Legislation would extend the relief to EMI shares by removing the 5% minimum shareholding requirement and allowing the 12 month minimum holding requirement to commence on the date the option is granted. This measure applies to shares acquired on or after April 6, 2012 that are disposed of on or after April 6, 2013. These measures are guaranteed to make EMI schemes more popular and will increase work in this area for practitioners. EMI Share Options: The Complete Guide is a highly practical book with an extensive use of questions and answers, examples, flowcharts, and tables to illustrate the key concepts. Contents: introduction - explaining the background to EMI and putting in the context of UK employee share schemes generally * statutory requirements - how a company qualifies for EMI * statutory requirements - how an individual qualifies for EMI * statutory requirements - how an option qualifies as an EMI option * tax reliefs for EMI options - income tax and NICs dues on unapproved options, EMI reliefs, comparison with other improved schemes * disqualifying events - what events and what are the tax consequences * CGT treatment of EMI options - a short history * the current advantage EMI holders have over other employee shareholders * corporation tax - the relief for grantor or employer * corporate transactions - impact on EMI options of a takeover of IPO * share valuation - when will it be needed for EMI options and what special factors may be relevant * conclusion - impact of recent developments - predicting the future of EMI.

Spis treści

1 Introduction 2 How a company qualifies for EMI and the overall limit 3 How an individual qualifies for EMI and the individual participation limits 4 How an option qualifies as an EMI option 5 Tax treatment of EMI options (other than capital gains tax on share sale) 6 Disqualifying events: what they are and how they compare with the qualifying conditions 7 Capital gains tax on disposal of EMI shares 8 Corporation tax relief for the employer 9 Company reorganisations – impact on EMI options of a takeover 10 Interaction with HMRC 11 Company law and employment law aspects Appendix 1 HMRC form EMI1 (notice of EMI option grant) Appendix 2 HMRC form EMI40 (EMI annual return for year ended 5 April 2013) Appendix 3 HMRC form VAL231 (request for a share valuation in connection with EMI) Appendix 4 Checklist of matters that must or may be covered by an EMI share option agreement