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

To view the full guidance note register for a free trial or if you already have access to TolleyGuidance please use the 'login' button below:

Request a Free Trial to TolleyGuidance to gain access to the full article

TolleyGuidance is produced by specialists within the field, our tax guidance materials provide actionable insights and practical guidance to support you day-to-day. We don’t just inform you about the latest changes in the tax world. We take the time to explain the implications and, most importantly, what actions you need to take for your clients.

A bit about you:

Please note that all fields marked with a * must be filled in
First name*
Last name*
Job title*