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The individual limit on the value of share options granted under an EMI
plan has been increased for the first time since 2000. The new limit has
been set at £120,000 and will have effect in respect of EMI options granted
on or after 6 April 2008.
However, the Government is to exclude certain companies from qualifying for
EMI in order to comply with EU state aid guidelines. Companies with more
than 250 employees and those involved in shipbuilding, coal and steel
production will no longer be able to offer EMI. These changes will take
effect from the date of the Finance Bill becoming law (expected to be this
summer).
Our view
We welcome the increase in the individual limit making the already
favourable EMI plan even more attractive for employees. Larger companies
who may be affected by the new employee number restriction should review
their existing share plan arrangements in the run up to the summer when
these changes are likely to take effect. |
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