Draft Finance Bill 2013: Mark Saunders talks about tax relief on EMI options being available to more employees

December 11, 2012

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Shares acquired on the exercise of an enterprise management incentive option from 6 April 2012 will be eligible for the 10% entrepreneurs’ capital gains tax rate provided:

  • the EMI option was granted at least a year before the sale of the shares and the shares are sold after 5 April 2013
  • the individual is an employee or director of the company in the year before the sale of the shares, and
  • the normal conditions for favourable EMI tax treatment are satisfied.

The change to measure the 12 months from grant will be very welcome. This means tax relief will be available to many more employees, for example those who exercise options and sell their shares on a change of control.