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