Spring Budget 2017 – Continued support for EMI

The Budget documents reaffirm the Government’s support for the most favourable of the existing employee share scheme regimes, Enterprise Management Incentives (‘EMI’).

Under EU rules, EMI would normally be classed as ‘State Aid’ to businesses and has needed special EU approval since it was introduced in Finance Act 2000.

The Chancellor has announced that the government will seek to extend the State Aid approval beyond its current expiry date in 2018. To what extent the State Aid rules will continue to apply beyond 2019 will depend on the final shape of the ‘Brexit’ deal.