I hurried into the local department store to Microsoft 70-483 Exam grab1 some last minute Chirsmas gifts. I looked at 300-101 dumps all the people and grumbled2 to myself. I would be in here forever and Examtestview I just had so much 300-101 practice test to do. Chirsmas was Examtestview beginning to become such a drag. I kinda wished that I could just sleep 300-101 practice test through Chirsmas. But I hurried the best I could through all the 300-101 exam dumps people to Bestexamview the toy department. Once again Bestexamview I kind of mumbled3 300-101 pdf to myself at 300-115 Dumps PDF the prices of Bestexamview all these toys, and wondered if the grandkids would even play whit4 them. I found myself in the doll aisle5. Out of the corner of my eye I saw a little boy about 5 holding a lovely doll.He kept touching6 300-115 Dumps PDF her 300-101 pdf hair and he 300-101 dumps held her so gently. I could not seem to help myself. I just kept loking over at the little boy and wondered who the doll was Microsoft 70-483 Exam for. I 300-101 exam dumps Bestexamview watched him 300-101 practice test turn to 300-101 exam dumps a woman and he called his aunt by name and said, “Are 300-101 pdf 300-115 Dumps PDF you sure I 300-115 Dumps PDF don’t have enough money?” She Microsoft 70-483 Exam replied a bit impatiently, “You know that Microsoft 70-483 Exam Microsoft 70-483 Exam you don’t have enough money for it.” 300-115 Dumps PDF The Bestexamview aunt told the 300-101 exam dumps little boy not to go anywhere that she had to go and get some other things and would be back Examtestview in a few minutes. And then she left the aisle. The boy continued to Microsoft 70-483 Exam 300-101 practice test Bestexamview hold the doll. After a bit 300-101 practice test I asked Bestexamview the boy who the Examtestview doll was for. He said, “It is the doll my 300-101 pdf sister wanted so badly for Chirsmas. She just 300-101 dumps knew that Santa would Examtestview bring it. “I told him that 300-101 dumps maybe Santa was going to bring it . He said, “No, Santa can’t go where my sister is…. I Microsoft 70-483 Exam have to give Microsoft 70-483 Exam 300-101 dumps the doll to 300-101 dumps my Mama to take to her. 300-101 dumps “I asked him where his siter was. He looked at me with the saddest eyes and said, 300-101 practice test “She 300-101 dumps was gone to be with Jesus.

My Daddy says that Mamma is 300-101 exam dumps going to have to go be with her.” My heart nearly stopped beating. Then 300-101 practice test the boy looked at me again and said, Examtestview “I 300-115 Dumps PDF told my Daddy to tell my Mama not to go yet. I told him to tell 300-115 Dumps PDF her to wait till I got back from the store.” Then he asked me if i wanted to see 300-101 practice test his 300-101 practice test picture. I told him I’d love to. Bestexamview He pulled out some picture he’d had 300-101 exam dumps taken at Bestexamview 300-101 practice test the front of the store. He said, “I want my Mama to 300-101 exam dumps take this with her so the dosen’t ever forget me. I love Bestexamview my 300-101 exam dumps Mama so very much Examtestview and I wish she Bestexamview Microsoft 70-483 Exam dind not have to Microsoft 70-483 Exam leave me.But Examtestview Daddy says she will need to be with my sister.” I saw 300-101 pdf 300-101 practice test that the little boy had lowered his head and had grown so qiuet. While he was 300-101 exam dumps not looking I reached 300-101 dumps into my purse and 300-115 Dumps PDF pilled out Microsoft 70-483 Exam Examtestview a handful of bills. I asked the little boy, 300-101 practice test 300-101 dumps “Shall we count that miney one 300-101 dumps Examtestview more time?” He 300-115 Dumps PDF grew excited and said, “Yes,I just 300-101 practice test know it has to be enough.” So I slipped my money in with his and we began to count it . Of course it was plenty for the doll. He softly said, “Thank 300-101 pdf you Bestexamview Jesus Examtestview for giving me enough money.” Then 300-101 exam dumps the boy said, 300-101 pdf “I just asked 300-101 exam dumps 300-115 Dumps PDF Jesus to give me enough money to buy this doll Examtestview so Mama Examtestview can Microsoft 70-483 Exam take it with her to 300-101 pdf give my sister. And he heard my 300-101 practice test 300-101 exam dumps prayer. I wanted to ask 300-101 pdf him give for enough to Microsoft 70-483 Exam buy my Mama 300-101 pdf a white rose, but I didn’t ask him, but he gave 300-101 practice test me enough to buy the doll Bestexamview and a rose for my 300-101 exam dumps Mama. She loves white rose 300-101 exam dumps so 300-101 pdf much. “In 300-101 exam dumps a 300-115 Dumps PDF few 300-101 dumps minutes the aunt 300-101 dumps came back and I wheeled my cart away. I could not Bestexamview keep from 300-101 practice test thinking about the little boy 300-101 pdf as I finished my 300-101 dumps shoppong in a ttally different spirit than 300-115 Dumps PDF when I had started. And I kept remembering a story I had seen in the newspaper several days earlier about a drunk driver hitting a car and killing7 300-115 Dumps PDF a little girl 300-115 Dumps PDF and Examtestview the Mother was in serious condition. The family was Microsoft 70-483 Exam deciding on whether to remove 300-115 Dumps PDF the life support. Now 300-101 exam dumps 300-101 pdf surely this 300-115 Dumps PDF Bestexamview little boy did not belong with that story.Two days later I read in the paper where the family had disconnected the Examtestview life support and the young woman had 300-101 pdf 300-101 dumps died. I could not forget the little Examtestview Microsoft 70-483 Exam boy and 300-101 pdf just kept wondering if the two were somehow connected. Later that day, I could not help Microsoft 70-483 Exam myself and I went out Bestexamview and bought aome white roses and took them to the funeral home where the yough woman was .And there she was holding a lovely white rose, the beautiful doll, and the picture of the little boy in the store. 300-101 dumps I left there in 300-101 pdf tears, thier life changed forever. The love that little boy had for his little sisiter and his mother was overwhel. And in a split8 second a drunk driver had ripped9 the life of that little boy to pieces.

In brief: a temporary breach of EU law by the UK government could (in theory) negate the attractive tax reliefs for EMI schemes. In practice, this concern only arises for EMI schemes breaching generous financial thresholds, and the average EMI scheme will not be affected.

What’s happened?

The attractive tax relief available for EMI (Enterprise Management Incentive) schemes require EU state aid approval. Although this approval expired on 6 April 2018, this is mainly an issue between the UK government and the EU commission.

Despite the lack of approval, the EMI legislation continues in force, and therefore (a) companies have the right to grant EMI options and (b) companies and employees have the right to claim the normal tax relief attaching to EMI options.

HMRC continue to consider EMI valuation submissions and accept registrations of EMI plans and option grants.

Why might the tax relief not be available?

Since a decision in 1990 by the UK House of Lords in the ‘Factortame’ case (involving a dispute over UK fishing policy), the UK courts have accepted that EU law may take precedence over UK law.

The specific EU law affecting EMI schemes is the so-called ‘standstill obligation’ (see note 1) which prevents the UK implementing new state aid measures before they have received approval. It includes powers for the EU commission to require state aid to be recovered from tax payers. The logic here would be that the UK government should not allow UK companies or employees to claim the tax relief under EMI schemes following the expiry of the previous approval, until new approval is given. If such tax relief is given, it could in theory be recovered from a taxpayer.

Why ‘in theory’? The obligation to recover tax is restricted by a number of safeguards, both specific to the recovery rules (e.g. that there are ‘no doubts about the aid character’; ‘there is an urgency to act’ and ‘there is a serious risk of substantial and irreparable damage to a competitor’) and general principles (relating to legal certainty and legitimate expectations).

On top of these safeguards, there is a ‘de minimis’ exemption for state aid.

We note that EMI was operated between 2000 and 2009 in breach of EU state aid rules without approval, and no action was taken to recover the tax relief.

What is the ‘de minimis’ exemption?

Even where EU state aid has been given without approval, and the UK has been required to recover that aid, this has only applied to amounts above the state aid ‘de minimis’ exemption.

This exemption allows for tax relief:

  • up to EUR 200,000
  • per company
  • over a three year period.

Note that the limit is on the amount of tax relief. The tax relief on EMI options occurs when the options are exercised, and will be a proportion of the overall gain on the option. It’s difficult to provide comprehensive guidance, as the calculation will depend on the individual circumstances of each option holder. However, looking at the latest statistics from HMRC (June 2017), EMI options were exercised in 2015/2016 with a total gain of £410 million, over shares in 1,280 companies, resulting in tax relief of £160 million.

For the average company:

  • 3-4 employees …
  • received a gain from their options of (in total) £320,000…
  • resulting in tax relief of £125,000 (well under the EUR 200,000 threshold).

What does this mean in practice?

The UK’s failure to obtain EU state aid approval was likely a mistake, and does not reflect any policy change. We understand that approval is being sought and should be received in a few months. At that point, these theoretical concerns will be nothing more than a technical footnote in EU law.

For the extremely risk averse, consider whether it’s likely that the options you are granting will be exercised in the next few months, and if so whether it’s likely that the employees will enjoy an immediate gain of many hundreds of thousands. If this applies to your company, you may wish to consider the details of the de minimis exemption.

For most companies granting options to be exercised on an exit or at least over the long term, there will be no issue. Grant EMI options as normal: HMRC will allow you to register them, and will have no grounds to deny the tax relief when the time comes.


Article 108(3) of the Treaty of the Functioning of the European Union