EMIs

Question 1

EMIs

When Does a Tax Charge Arise on:
* Granting an Option?
* Exercising an Option?

Answer 1

• Never
• Only When The Option is Granted at a Discount

Question 2

EMIs

How is an EMI Option Treated if Exercised More Than 10 Years Since Grant?

Answer 2

As a Non-Tax Advantaged Option.

Question 3

EMIs - Qualifying Conditions

To Grant an EMI Option, The Company Must:

Answer 3

Be a Small Trading Company.
* Assets < £30 Million
* Full-Time Equivalent Employees < 250

Have a Permanent Establishment in The UK.

Question 4

EMIs - Qualifying Conditions

The Maximum Value of Shares an Employee Can Hold at Any Given Time is:

Answer 4

£250,000.

(Valued at Grant)

Pooled With Shares Held Under a CSOP Option.

Question 5

EMIs - Qualifying Conditions

The Working Time Condition is Where an Employee Must Devote:

Answer 5

• 25 Hours a Week; or
• 75% of Their Total Working Time To The Company.

Question 6

EMIs - Qualifying Conditions

What CGT Relief Can be Claimed on Disposal?

Answer 6

Business Asset Disposal Relief.

The Shares Must be Held For More Than 2 Years Since Grant.