With all these great benefits, you're probably thinking, "This is perfect for me and
my organisation but what's the catch?" In short, there isn't one. However, there are
various conditions that employers and employees must meet in order to qualify for
an EMI:
WHY ARE EMI SHARE PLANS SO POPULAR IN THE U.K.?
6 | SHAREWORKS BY MORGAN STANLEY
Which Companies Can Operate an EMI?
Other Key Things to Bear in Mind When Considering EMIs
You need a share valuation. This valuation impacts the tax position, so without a share
valuation you can't grant any EMIs.
Once granted, the issuing company must notify the HMRC within 92 days of the grant
date. The share plan needs to be registered with HMRC online before notifications can
be accepted.
It's open to companies or groups with gross assets up to £30m.
It's restricted to companies that have fewer than 250 full-time equivalent
employees (at the date options are awarded).
The company can't be a subsidiary or controlled by another company.
They must have a permanent establishment in the U.K.
Employees must work for at least 25 hours per week (or 75% of their working
time) and who have no material interest in the company.
Companies who operate within an excluded trade do not qualify. The most
noteworthy here are the banking, insurance and property sectors.
