To qualify for the tax breaks that Enterprise Management Incentive (EMI) brings, companies must meet a number of requirements. The requirements broadly fall into three categories: the size of the company/group and its structure; terms of the option; and the nature of the company/group’s trade. This document also covers the detail on excluded activities..

Points discussed within this guidance note:

> Introduction

This note provides guidance for deciding whether setting up an EMI scheme (Enterprise Management Incentive) is the appropriate course of action, including the requirements that a company must meet to qualify for the tax breaks that an EMI scheme may bring. This note also considers emi excluded activities.

> Size and structure

The first requirement for seting up an emi scheme relates to the  size  of  the company / group and its structure. In order to be an emi qualifying company it must be independent, and there are strict rules on subsidiaries, gross assets and numbers of employees.

> Independence

> Subsidiaries

> Gross assets

> Number of employees

> Terms of the option

> Types of share

> Nature of agreements

> The grantor of the options

> The grantor of the options

> The nature of the company / group's trade

> Purpose of the company

> Qualifying trade

> Clarification

> Excluded activities

> Particular excluded activities

> Wholesale or retail distribution

> Leasing

> Property development

> Hotels and comparable establishments

> Nursing homes and residential care homes

> Provision of facilities for another business

> Financial activities, etc


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