Employment Related Securities Bulletin
28 August 2019
The latest Employment-related securities bulletin provides a reminder that HMRC has now extended the period of time for agreeing Enterprise Management Incentive (EMI) values from 60 days to 90 days.
Enterprise Management Incentive (EMI) scheme valuation
HMRC has now extended the period of time for agreeing EMI values from 60 days to 90 days. If an EMI company does not grant options within this time they will need a new valuation.
Since 2012 any company operating an EMI scheme must carry out their own valuation of shares when they grant options to employees.
It’s important that shares are valued accurately at this time as it may affect the amount of tax due when the employee later exercises these options. There may also be longer term implications for the EMI firm when options are exercised as part of a sales process if, as part of their due diligence, the buyer discovers that the options were granted at undervalue.
Further information on EMI scheme valuations can be found in the Employment Related Securities Bulletin 32, which also includes:
When to submit your ERS annual return
Common ERS annual return errors
Contact for advice
Contact HMRC about ERS Bulletins