Victoria House, 116 Colmore Row,
Birmingham B3 3BD
0121 281 5798

EMI Options and Furlough

19 August 2020

EMI Options and Furlough

Please see our previous discussions on this topic.

HMRC has now confirmed its position on EMI schemes and satisfying the working time arrangements. HMRC will accept that from 19 March 2020, if an employee would otherwise have met the scheme requirements but did not do so for reasons connected to the coronavirus pandemic, the time which they would have spent on the business of the company will count towards their working time.

HMRC have also confirmed that they will disregard the reduction in working time as a disqualifying event under the legislation if it is for reasons connected to the coronavirus pandemic. HMRC will accept the following as reasons for which an employee may have been unable to meet the working time requirements:

·        Furlough

·        Working reduced hours

·        Unpaid leave.

However, in all cases the reason must be attributable to the current coronavirus pandemic and the period must have begun on or after 19 March 2020. Employers and employees must keep evidence to show that there is a link to the coronavirus pandemic.

Changes to the legislation will be made in the current and next Finance Bill to ensure that EMI options granted before and after 19 March 2020 will remain qualifying in the circumstances outlined above.

To find out more about how we can help you or your client, please contact Stephen Woodhouse (

« Back to News

Pett, Franklin & Co. LLP is a limited liability partnership registered in England & Wales (registered number: OC354096) and an alternative business structure ("ABS") authorised and regulated by the Solicitors Regulation Authority (No. 534342).

The word 'partner', used in relation to this LLP, refers to a member of the LLP. A list of the members of this LLP is displayed at the registered office of the LLP: Victoria House, 116 Colmore Row, Birmingham B3 3BD.

No contract can be concluded with Pett, Franklin & Co. LLP nor service effected by email.

(C) Copyright 2017 Pett Franklin & Co. LLP. All rights reserved.

The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this page was first published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.