EMI state aid approval to continue during transition period

On 11 February 2020, HM Revenue & Customs (“HMRC”) confirmed that EU state aid approval for EMI option will continue to apply until the end of the Brexit transition period (which ends on 31 December 2020).

The European Commission had announced that the UK would still benefit from EU state aid rules back in May 2018 (subject to the United Kingdom still being a member of the European Union).

Some uncertainty arose as regards whether European Commission would once again extend state aid approval as regards EMI schemes once the United Kingdom left the European Union on 31 January 2020. The uncertainty was addressed by HMRC in issue 34 of the “Employment Related Securities Bulletin”. Additionally, the bulletin also pointed out that HMRC would provide further information as regards how EMI schemes would operate once the transition period has ended.

Our management incentives team will be following developments as regards the future of EMI schemes as we get closer to the end of the transition period. If you have any queries as regards setting up an EMI option scheme or any other HMRC approved incentives scheme, do get in touch and our team would be delighted to assist you.

This piece was researched and prepared by Amir Kursun and Jeremy Glover.

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