The European Commission has published the letter containing its detailed decision to approve the UK’s application to extend the enterprise management incentive (EMI) scheme. The Commission gave its approval on 15 May. The previous state aid approval expired on 6 April 2018 and the new approval will continue to apply until the UK leaves the EU.
The only additional condition attached to the approval is the requirement for HMRC to publish certain information about businesses in receipt of state aid exceeding €500,000. This requirement has existed since 1 July 2016 under the EU’s General Block Exemption Regulation relating to state aids.
The UK government is now expected to make regulations adding the EMI scheme to the list of ‘tax advantages constituting the grant of state aid’ contained in Finance Act 2016 Sch 24. HMRC has powers under Finance Act 2016 s 181 to publish relevant state aid information about the tax advantages listed. This information should include:
the identity of the granting authority;
aid granted to the eligible SME;
the date of granting;
the form and amount of aid granted to eligible employees per eligible SME;
the region in which the eligible SME is located; and
the principal economic sector in which the eligible SME has its activities.
The European Commission has published the letter containing its detailed decision to approve the UK’s application to extend the enterprise management incentive (EMI) scheme. The Commission gave its approval on 15 May. The previous state aid approval expired on 6 April 2018 and the new approval will continue to apply until the UK leaves the EU.
The only additional condition attached to the approval is the requirement for HMRC to publish certain information about businesses in receipt of state aid exceeding €500,000. This requirement has existed since 1 July 2016 under the EU’s General Block Exemption Regulation relating to state aids.
The UK government is now expected to make regulations adding the EMI scheme to the list of ‘tax advantages constituting the grant of state aid’ contained in Finance Act 2016 Sch 24. HMRC has powers under Finance Act 2016 s 181 to publish relevant state aid information about the tax advantages listed. This information should include:
the identity of the granting authority;
aid granted to the eligible SME;
the date of granting;
the form and amount of aid granted to eligible employees per eligible SME;
the region in which the eligible SME is located; and
the principal economic sector in which the eligible SME has its activities.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
