EMI options - the individual limit increases to GBP250,000
With effect from 16 June, 2012 the individual limit for Enterprise Management Incentives ("EMI") share options will increase from £120,000 to £250,000.
The individual limit determines the maximum value of unexercised EMI options which may be held by an individual. This increase should be welcome news for EMI option holders who hold EMI options with a value that is approaching the £120,000 limit who anticipate receiving a further grant of EMI options.
Employers who are proposing to grant EMI options in the near future may want to consider waiting until 16 June, 2012 before granting the options. If the EMI option specifies the maximum amount of the value of EMI options that can be held by an employee, without including a provision which permits the amount to automatically be amended by reference to the relevant statutory provision, then the rules may need to be amended to take advantage of the increase in the individual limit.
Please see the link in our Resources section below which provides details of the EMI changes announced in the Budget 2012.
The increase in the individual limit is good news. However, employers should review their EMI documentation to determine if it needs to be amended to allow options to be granted up to the new limit.