Enterprise Management Incentives (EMI): improvements to the process to grant options The measure makes changes to simplify EMI by removing two administrative requirements when companies grant EMI options on or after 6 April 2023. Existing EMI share options granted before 6 April 2023 that have not been excercised will also benefit from the changes. Firstly, it removes the requirement for the company to set out within the option agreement the details of any restrictions on the shares to be acquired under the option. Secondly, it removes the requirement for the company to declare that an employee has signed a working time declaration when they issued an EMI option. It does not remove the working time requirement itself. From 6 April 2024, the government will also extend the deadline for notifying an EMI option from 92 days following the grant to the 6 July following the end of the tax year. This will be legislated separately and the impacts will be set out at that point.
From 6 April 2023 the figure used as the basis for calculating the benefit for employees who receive free private fuel from their employers for company cars is increased to £27,800. Company vans For 2023/24 the benefit increases to £3,960 per van and the van fuel benefit charge where fuel is provided for private use increases to £757. If a van cannot in any circumstances emit CO 2 by being driven, the cash equivalent is nil. Reform of the Company Share Option Plan (CSOP)
This reform makes changes to the CSOP, a tax- advantaged employee share scheme available to all UK companies and their employees as follows: • The employee share options limit will be doubled from £30,000 to £60,000. • The ‘worth having’ condition, which limits which types of shares are eligible for inclusion within a CSOP scheme, will be removed. These changes will have effect for share options granted under CSOP schemes on or after 6 April 2023. Existing options granted before 6 April 2023 will also benefit from these changes.
Employment
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