Issues to consider when furloughing employees under EMI Schemes.
One key consideration for businesses to consider when looking to furlough staff will be those employees who are on EMI Schemes. Qualifying tax rules on granted share options are very strict for employees and require employees to work a minimum number of hours in the business and meet certain employment criteria. Those who have been placed on furlough will still be employees but will not be working which could result in them not qualifying for the favourable tax treatment that EMI Schemes offer.
HMRC have been asked for comment and further information will follow in relation to the furlough scheme and its impact of EMI Schemes.
Our Corporate and Commerical team here at Downs will be following such guidance and will be able to advise you on what needs to be done and considered at every stage.