Enterprise Management Incentives
The Enterprise Management Incentive is a share based tax incentive targeted at independent trading companies with a gross asset base of £30 million or less, and designed to enable them attract, retain and incentivise employees.
The Enterprise Management Incentive is an option or right to purchase a stated number of shares in a company. Employees are granted these options under separate option agreements, the market value of the shares at the time of the grant must not exceed £120,000 (£100,000 prior to 6 April 2008) for each employee. There is no ceiling on the number of employees that can be granted Enterprise Management Incentive options; however, the total aggregate value of shares over which options can be granted under Enterprise Management Incentive options must not exceed £3 million for the company.
To qualify for the favourable tax treatment under the Enterprise Management Incentive the following must be met:
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This briefing has been prepared for general guidance only and should not be acted upon without specific advice. Please contact us if you need further information.
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