EMI Valuations are usually valid for 90 days*

Valuations for EMIs are usually valid for 90 days* from the date of the agreement. You may be able to extend this agreement period for a further 30 days by writing to the HMRC EMI team ("SAV"). Include written confirmation that no significant events have happened since the original valuation or are likely to happen in the period for which you’re asking for the extension.

*Please note that due to Coronavirus, any EMI Valuations that expire on or after 1 March 2020, and any new EMI Valuations created on or after 1 March 2020 can automatically be treated as having been extended by 30 days, so that they are valid for a total of 120 days. ( See HMRC Employment Related Securities Bulletin 35 (June 2020))


EMI options must be granted within 90 days*

A company must grant a option within 90 days* of receiving an EMI valuation for that option to qualify for the agreed valuation. 

Any options granted after that will not be covered by that valuation, and the company and employee could end up with hefty tax liabilities when the option is exercised later - so after that 90 days has elapsed you'll need to request another valuation before issuing the next batch of options.

*Please note that due to Coronavirus, any EMI Valuations that expire on or after 1 March 2020, and any new EMI Valuations created on or after 1 March 2020 can automatically be treated as having been extended by 30 days, so that they are valid for a total of 120 days. ( See HMRC Employment Related Securities Bulletin 35 (June 2020))

Employees have 7 days to sign their Option Agreement

The employee must return the signed Option Agreement within 7 days to the Company.

You must inform HMRC within 92 days of an options grant

You must tell HMRC about a grant of an EMI option within 92 days of the date of the grant under schedule 5 Income Tax (Earnings and Pensions) Act 2003.

If you don’t tell HMRC about the grant within 92 days, you risk losing any tax benefits for you and your employee.

You must do an annual return before 6 July

The Company must complete an online end-of-year return on or before 6 July for each registered EMI scheme.

Did this answer your question?