U.K. Delay in Renewing State Aid Waiver Possible Elsewhere in EU


First published in TAX NOTES INTERNATIONAL, By William Hoke

The U.K.’s belated announcement that EU state aid approval for an important employee benefit scheme would expire within days blindsided taxpayers and should serve as a cautionary tale for taxpayers and governments alike, practitioners say.

The U.K.’s enterprise management incentive (EMI) scheme, as originally approved by the European Commission in 2009, allowed small and medium-size companies to offer their employees options to acquire shares worth up to £120,000 at a predetermined price. If the value of the shares increases, employees can purchase them at the lower pre-agreed price.

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