Eternity Law International — News — EMI schemes after Brexit

EMI schemes after Brexit

Published:
November 2, 2022

According to the statement of HMRC, EMI schemes will remain to be effective after Brexit transitional period. These schemes allow some businesses to provide workers nontaxable share options worth up to £250,000; they do not expire and will be applicable in the post-Brexit period.

What can companies hope for?

As of now, there are multiple limitations on which companies can use EMI options and which employees can also be given some options. The HMRC had not made any explanations on how the EMI Scheme could be modified to assist high-growth companies, however, there are several ways that this could be implemented.

  • Some limits could be prolonged – For instance, the max. gross assets (£30,000,000), max. individual (£250,000), and company limits (£3,000,000) may look to be enlarged by the local governmental authorities. This would make the scheme broader and allow more companies to use EMIs.
  • Worker time conditions could be prolonged – Employees that wish to become participants in an EMI scheme are obliged to satisfy the “working time obligation” – which must be over 25 hours/7 days or 75% of their operational time. This term could be extended to cover more workers on other than full-time working basis, which would be a mutually-beneficial amendment.

Tax benefits of the EMI scheme

One of the greatest pros of the EMI is that it can minimize the net capital gain tax rate liability on a future sale of shares to 10%. The authorities have however introduced a report on Capital Gains Tax which proposes a substantial increase in rates – but now this is not clear if these proposals will be affected.

EMI post-Brexit

The operation of EMI schemes in the UK necessitates that the Government obtains state aid approval from the EU, which was last time renewed in May 2018 and applied to April 2023. But following the expiration of the Brexit transition period at the end of 2020, this EU approval is no longer needed.

HMRC has confirmed that EMI schemes will be effective under the local law. Generally, these measures provide comfort conditions to workers that have been affected by the pandemic, providing flexibility where changes have been necessary to their working patterns, and confirmation that these schemes will remain to be available in the coming years.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Forex regulation changes

Forex regulation changes. Forex regulation is becoming stricter, but this is expected to benefit the long-term investment safety of clients. The retail forex industry is developing rapidly. And the popularity of online currency and securities trading continues to grow. An overview of regulated forex brokers and the role of internal requirements evolves along with this...

Malaysia DAX - digital asset exchange in Malaysia

In recent years, the global monetary landscape has witnessed the rapid emergence and growth of crypto and digital investments. As these digital currencies gain mainstream acceptance, the demand for secure and reliable programs to trade and interchange them has surged. Malaysia, a vibrant Southeast Asian nation, has stepped into the digital asset arena with the...

PSP license in Singapore

If you’re intending to deliver commercial offers directly connected with payments in Singaporean market, you are obliged by law to acquire a Singapore PSP-license. Below are the key points you need to consider before entering Singaporean financial market-space and getting a Singapore payment service providers license. What’s a PSP authorization? A Singaporean PSP-license is permission...

Fund management license in Singapore

Storage of money can and should be realized in lands having a positive climate. One perfect place for it on our planet is Singapore. Governmental bodies in region are trying to do everything to continue the flow of investment into the country. In particular, it created versatile rules for corporations who want to do business-activities...

FCA Regulated Multi-Asset Advisory Brokerage UK for Sale

Imagine: you don’t start from scratch, you don’t go through the tedious procedure of obtaining a license, you don’t spend months on coordination with regulators. Instead, you immediately get access to a ready-made brokerage structure with permits, staff and assets. This is exactly the opportunity that is now available to those who want to acquire...

Change of director

As practice shows, the change of founders in most cases contributes to the dismissal of the head of the enterprise. We will dwell on this procedure in more detail. What does the concept of “change of director” mean and what is the motive for such a decision? In order to change the director, it is...

Related posts

EMI license in Portugal

Introduction Portugal, known for its picturesque landscapes and rich cultural heritage, has also emerged as a hotspot for businesses, especially in the fintech sector. One key aspect that has contributed to this trend is the availability of EMI (Electronic Money Institution) licenses in the country. In this article, we will delve into the requirements, services,...

EMI license in Spain

In recent years, Spain’s financial realm has experienced a profound transformation, aligning itself with the global trend towards digitization and the rapid evolution of fintech solutions. This shift has not only altered the way both individuals and businesses engage in financial transactions and sales but has also underscored the need for robust regulatory measures to...

EMI license in Cyprus

Companies that specialize in payment services in Cyprus are controlled at the legislative level. The provisions of the new directives, in comparison with the previous ones, are aimed at the future improvement of the payments sector in the EU for the benefit of companies and customers. The new regulations also help develop new internet and...

EMI license in Poland

Poland is a state with great prospects for enterprises from Fin-sector. This state offers Fin enterprises a huge number of experts who know their field. Local market offers favorable conditions for starting a business connected with fiscal field. That’s why obtaining an EMI license in Poland is opportunity to be part of a thriving technology...

Implications of Brexit on attorneys and legal services

For the latest information on this topic, we invite you to familiarize yourself with our new research on Brexit, business and law. First, a disclaimer: there is a wealth of information on the possible effects of Brexit – too extensive to be comprehensively covered in this article. So instead, we’ve outlined common concerns in several...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: