Furlough scheme – EMI options not to be disqualified

2 July 2020 / Insight posted in Article, Tax

One of the conditions of EMI is that the option holder has to satisfy the ‘full-time’ working requirement.  There was concern that if an option holder was furloughed, this condition would not be met.  Representations have been made to the Chancellor to address this and introduce a relaxation, as there is for reservists who are called up for military action.

An amendment is being to the Finance Bill to provide that not being required to work because of for reasons connected with coronavirus will be counted as ‘working time’.  This provision has effect from 19 March 2020 until 5 April 2021.

This is a very welcome change and helps prevent the unfair disqualification of EMI options under the current pandemic.

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