More companies able to grant EMI options

United Kingdom
The Chancellor announced in his pre-Budget report on 27th November 2001 that the number of companies permitted to grant enterprise management incentive options (EMI options) to their employees would be increased with effect from 1st January 2002 as a consequence of the relaxation of the maximum gross assets value test. Until 31st December 2001companies (or groups of companies) whose gross assets value does not exceed £15m are permitted to grant EMI options.

From 1st January 2002 companies (or groups of companies) whose gross assets value does not exceed £30m will be permitted to grant EMI options. In addition, the taper relief rules are to be relaxed with effect from 6th April 2002, so that holders of EMI options may be able to take advantage of the maximum level of taper relief after only two years.

For more information about EMI options and the applicability of taper relief, please contact Tax partner Kate Kelleher

Phone: +44 (0)20 7367 2860

e-mail: kate.kelleher@cms-cmck.com