Draft legislation published on future change to the EMI notification process

Following on from the two administrative changes to simplify the process for granting enterprise management incentive (EMI) options introduced earlier this year, companies operating EMI plans are reminded that a third change is due to take effect from 6 April 2024.

From 6 April 2024, the government will extend the time limit for a company to notify HMRC of the grant of an EMI option from 92 days following grant, to by 6 July following the end of the tax year.

Draft legislation was published on 18 July 2023, and we expect that further detail and guidance will be provided by HMRC in the coming months. For now, we anticipate that HMRC will make further changes to its EMI notification template and/or annual return templates next year.

It is important to note that this is a future change - to qualify for tax relief, companies granting EMI options prior to 6 April 2024 must continue to notify the grant of EMI options to HMRC within 92 days of the date of grant.

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