Budget 2012 – EMI scheme limits
March 21, 2012
– in addition to announcing a decision to conduct an internal review into the role of employee share schemes in supporting growth and the removal of barriers to their general adoption, the Chancellor George Osborne also announced in today’s 2012 Budget an intention to raise the EMI limit from £120,000 to £250,000, an increase of £130,000 in the value of shares which companies can grant under option under the Enterprise Management Incentive. He also announced that Entrepreneurs Relief will be extended to qualifying gains enjoyed under the EMI, thereby reducing the potential tax to 10% from 28% capital gains tax. Whilst this is in deed a welcome development and a shot in the arm for SME companies, it is subject to State Aid approval and we will therefore need to wait for an effective date of implementation.