Could this be potentially the biggest shake up in the share plans landscape for more than 20 years?
The Chancellor has provided “a Call for Evidence” so that his review of the Enterprise Management Incentive (EMI) plan announced in April 2020 can move forward.
EMI is without a doubt the most popular share scheme for the employees of SMEs, it offers generous tax advantages and government figures demonstrate that “usage has increased significantly”.
The ‘Call for Evidence’ will consider whether:
The government seeks views from businesses, business representative organisations, and employees as well as anyone interested in the EMI by the 26 May 2021.
With statistical evidence from various sources demonstrating a positive link between employee share ownership and productivity, anything other than an extension of the benefit of EMI will be extremely unwelcome by the entrepreneurial businesses best placed to underpin a recovery from the economic downturn resulting from the pandemic. Although the focus of this development is the review of EMI, it is clear from the questions raised by the Chancellor and the approach adopted, that the review is not solely going to be restricted to EMI and could bring about the biggest shake up in the share plans landscape for years.
We will be looking to collate responses from our clients in response to the consultation. Please feel free to get in touch with Shaun Young before the deadline on 26 May 2021.