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decision.175 An amendment to a scheme under which the holder of the option obtains new rights, eg reducing the period of time before the option becomes exercisable, cannot be made without Revenue approval.176 |
16A.8.2.2.6 The Company The company must be, or be controlled by, a single company.177 The scheme may contain provisions allowing for the exchange of rights following a takeover; rights to acquire shares in the new company may be acquired.178 This has to be agreed by the new company and the value of the new option must be the same as that of the old option. The employer could deduct the costs of introducing such schemes.179 |
16A.9 Enterprise Management Incentives Sections 527–541 |
16A.9.1 Enterprise Management Incentives |
Enterprise management incentives (EMI) are share option schemes designed to help small companies attract and retain the key people they need and to reward employees for taking a risk by investing their time and skills in helping small companies achieve their potential. The rules introduced in 2000 were widened in 2001, EMIs bearing testimony to New Labour’s striking willingness to grant great favours to small groups of people. An option only qualifies180 if granted for commercial reasons in order to recruit or retain an employee (originally a key employee) in a company; it must not be part of a scheme or arrangement the |