Confirmation entrepreneurs relief extended to EMI options
The Chancellor has confirmed that entrepreneurs relief (which is the 10% rate of CGT on lifetime gains of £10m) will apply to the disposal after 6 April 2013 of any shares acquired through the
The Chancellor has confirmed that entrepreneurs relief (which is the 10% rate of CGT on lifetime gains of £10m) will apply to the disposal after 6 April 2013 of any shares acquired through the exercise of qualifying EMI options.
This had been proposed in the Autumn Statement together with the publication of draft legislation. However, it is good to see this relief confirmed in the Budget.
It means that provided an EMI option is itself held for more than twelve months, any shares acquired on exercise and then sold after 6 April should attract CGT at a rate of just 10% (subject to the lifetime limit).
EMI has always been popular with UK businesses and employees because of the tax reliefs on exercise and its general flexibility in terms of structure. The confirmation of the extenstion of ER to gains on sale of EMI shares will make EMI even more attractive and is very good news for UK employers wanting to incentivise their staff with share options.
This had been proposed in the Autumn Statement together with the publication of draft legislation. However, it is good to see this relief confirmed in the Budget.
It means that provided an EMI option is itself held for more than twelve months, any shares acquired on exercise and then sold after 6 April should attract CGT at a rate of just 10% (subject to the lifetime limit).
EMI has always been popular with UK businesses and employees because of the tax reliefs on exercise and its general flexibility in terms of structure. The confirmation of the extenstion of ER to gains on sale of EMI shares will make EMI even more attractive and is very good news for UK employers wanting to incentivise their staff with share options.