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Extended deadline for EMI valuations

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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.

Issue: 1491
Categories: News