Employment Related Securities Bulletin 28 (May 2018)

Find out about an update for Enterprise Management Incentives (EMI) share options and annual return deadlines.

Employment related securities (ERS) bulletins give information and updates on developments relating to employment-related securities, including the tax-advantaged employee share schemes.

We publish ERS bulletins when:

  • articles or updates are available
  • HMRC has any item to bring to your attention quickly

Any reference to Income Tax (Earnings & Pensions) Act 2003 (ITEPA) is to the amended legislation.

Companies and advisers concerned with the grant of Enterprise Management Incentives share options

On 15 May 2018, the European Commission announced its decision not to raise objections to the prolongation of the Enterprise Management Incentives scheme on the grounds that it is compatible with the internal market of the EU.

More information is available on the Commission’s competition website, under the reference SA.47789.

This decision means that the Enterprise Management Incentives scheme continues to operate in the same way as described in HMRC’s current guidance and practice, for employment related securities options validly granted and exercised as Enterprise Management Incentives share options.

Annual returns

You must submit electronically your employment related securities annual return for 2017 to 2018 on or before 6 July 2018, following the end of the tax year.

All new schemes established during 2017 to 2018 must be registered by 6 July 2018.

After the 6 July 2018 the following types of new schemes, established during 2017 to 2018 cannot register or submit an annual return:

  • Company Share Option Plan (CSOP)
  • Share Incentive Plan (SIP)
  • Save As You Earn (SAYE) schemes

No changes have been made to the scheme.

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Published 17 September 2018