March 2010 Budget: amendments to enterprise management incentives (EMI) legislation | Practical Law

March 2010 Budget: amendments to enterprise management incentives (EMI) legislation | Practical Law

A legal update about the March 2010 Budget announcement regarding the timing of implementation of proposed changes to enable companies with a "permanent establishment" to grant enterprise management incentive (EMI) options.

March 2010 Budget: amendments to enterprise management incentives (EMI) legislation

Practical Law UK Legal Update 3-501-8244 (Approx. 2 pages)

March 2010 Budget: amendments to enterprise management incentives (EMI) legislation

by PLC Share Schemes & Incentives
Published on 24 Mar 2010 • United Kingdom
A legal update about the March 2010 Budget announcement regarding the timing of implementation of proposed changes to enable companies with a "permanent establishment" to grant enterprise management incentive (EMI) options.
The March 2010 Budget confirmed that legislation is planned in 2010 to amend provisions in the enterprise management incentive (EMI) legislation to allow companies with a permanent establishment in the UK to grant EMI options, as previously announced (see 2009 Pre-Budget Report: amendments to enterprise management incentives legislation). However, the change will now:
  • Be included in a finance bill to be introduced after the forthcoming general election.
  • Apply only for options granted on or after the date on which that bill receives royal assent.
In the 2009 Pre-Budget Report, it had been announced that this change would apply for options granted on or after 6 April 2010. Currently, only companies which carry out a qualifying trade wholly or mainly in the UK can grant EMI options. The amendment is needed to ensure that the EMI legislation complies with EU state aid rules.
See BN13 - Enterprise management incentives, March 2010 Budget notes.
To access other March 2010 Budget documents, see Legal update, March 2010 Budget: links to HMRC and HM Treasury materials.