The Budget contained only good news for employee share schemes,
although nothing of immediate value!
EMI
For smaller companies, there was the news that the maximum value
of shares which can be put under option under the EMI scheme will
more than double from £120,000 to £250,000 (from a
still undecided date). Also, the applicable rate of tax on relevant
capital gains will fall to 10% (from 6 April 2012).
The timetable for implementation of both of these is unclear as
they are dependent on European approval as potential State aid but
if and when they are implemented, companies which have already
granted EMI options up to the existing maximum of £120,000
will be able to grant additional options to relevant employees up
to the new maximum. An option package over up to £250,000 of
shares will certainly be a valuable incentive for anyone joining
this kind of company.
