Does HM Revenue & Customs supervise the operation of the EMI?
There is no need for prior approval of the EMI from HM Revenue & Customs – the company must simply notify HM Revenue & Customs within 92 days once an option has been granted. A company can seek advance informal assurance from HM Revenue & Customs that it is a qualifying company. HM Revenue & Customs has a period of 12 months from the expiry of the 92 day notification period in which to check whether the grant is within the EMI rules. The company will have a right of appeal against any HM Revenue & Customs decision that this is not the case. HM Revenue & Customs has a power to require the company to provide it with information to enable it to carry out an investigation into the grant of options. Any valuation of shares in connection with the EMI will need to be agreed with the Shares Valuation Division of HM Revenue & Customs. It is intended that this process will be streamlined as much as possible. Companies who grant EMI options will need to make a return to HM Revenue & Customs withi
