HMRC’s Employment
Related Securities Bulletin 35 (June 2020) highlights a number of
coronavirus-related changes to enterprise management incentive (EMI) share valuations
and member contributions to save as you earn schemes (SAYE).
Before an EMI option is granted, it is possible to agree an
appropriate valuation with HMRC. The option must then be granted within 90 days
of the valuation date. Coronavirus may lead delays in granting EMI options,
taking individuals over this 90-day period. Where there has been no change that
may affect an appropriate value, any EMI valuation agreement letters already
issued, where the 90 days expires on or after 1 March 2020, can be
automatically treated as being extended by a period of 30 days. Any new EMI
valuation agreement letter issued on or after 1 March 2020 will be valid for
120 days.
In normal (non-coronavirus) times, monthly contributions to a
SAYE scheme can be delayed on up to 12 occasions during the lifetime of the
savings contract without the contract being cancelled. The maturity date is
then extended by the number of months missed. Where participants in SAYE
schemes are unable to make contributions because they have been put on furlough
or are on unpaid leave because of coronavirus, HMRC will extend the payment
holiday terms beyond the usual 12-month maximum. The extension applies to all
employees with a savings contract in place on 10 June 2020, and where the extra
months of delay are due to coronavirus. Guidance in HMRC’s Employee Tax
Advantaged Share Scheme User Manual (at ETASSUM34140) is expected to be
updated accordingly.
HMRC’s Specimen Save As You Earn (SAYE) prospectus has
also been updated to reflect the concession for missed contributions due to
coronavirus.
HMRC’s Employment
Related Securities Bulletin 35 (June 2020) highlights a number of
coronavirus-related changes to enterprise management incentive (EMI) share valuations
and member contributions to save as you earn schemes (SAYE).
Before an EMI option is granted, it is possible to agree an
appropriate valuation with HMRC. The option must then be granted within 90 days
of the valuation date. Coronavirus may lead delays in granting EMI options,
taking individuals over this 90-day period. Where there has been no change that
may affect an appropriate value, any EMI valuation agreement letters already
issued, where the 90 days expires on or after 1 March 2020, can be
automatically treated as being extended by a period of 30 days. Any new EMI
valuation agreement letter issued on or after 1 March 2020 will be valid for
120 days.
In normal (non-coronavirus) times, monthly contributions to a
SAYE scheme can be delayed on up to 12 occasions during the lifetime of the
savings contract without the contract being cancelled. The maturity date is
then extended by the number of months missed. Where participants in SAYE
schemes are unable to make contributions because they have been put on furlough
or are on unpaid leave because of coronavirus, HMRC will extend the payment
holiday terms beyond the usual 12-month maximum. The extension applies to all
employees with a savings contract in place on 10 June 2020, and where the extra
months of delay are due to coronavirus. Guidance in HMRC’s Employee Tax
Advantaged Share Scheme User Manual (at ETASSUM34140) is expected to be
updated accordingly.
HMRC’s Specimen Save As You Earn (SAYE) prospectus has
also been updated to reflect the concession for missed contributions due to
coronavirus.
