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

Registration and maintenance of an Estonian company

Registration and maintenance of an Estonian company. To register an open joint stock company in Estonia, you only need a minimum authorized capital – 2,500 euros. Its entry is not considered a prerequisite. The total cost of starting a new company must be up to five thousand euros. It is also important that the firm...

Company registration in Greece

Greece is one of those countries where the company registration procedure is as close as possible to the offshore type. In addition, the legal framework in Greece is quite loyal, especially in relation to foreign entrepreneurs. It is the favorable conditions for doing and organizing business that have made Greece such a desirable jurisdiction. Companies...

The cryptocurrency in Thailand

The Ministry of Finance of the State is carrying out a program to regulate the circulation of cryptocurrency assets, now it will not be easy for traders to obtain cryptocurrency in Thailand. Experts understand the intricacies of the new tax policy of the state. The meeting of the Cabinet of Ministers was held on March...

Experience

Our experts in international law, tax planning, banking and payment solutions, who work for more than 10 years, lawyers, tax and bank consultants, know the specifics of their work.

PSP license in Lithuania

In Lithuania, a PSP permission is required to operate a remittance service biz. The PSP permission is issued by the Bank of Lithuania, which is the country’s central bank and monetary regulator. The permission is needed for businesses that supply payment favors such as remittance processing, remittance initiation, and money transmissions. Requirements for PSP license...

Company registration in Labuan

Labuan has signed more than 40 agreements to avoid double tax payments, including with France, Austria, Australia, the Netherlands and other countries. Labuan is an exemplary jurisdiction that maintains stable and trusting economic and political relations with the Malaysian island, which is a separate administrative territory. This is what attracts foreign investors. Doing business in...

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:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360