ETASSUM52020 - Enterprise Management Incentives (EMI): Qualifying companies: Advance assurance that a company will qualify for EMI

Part 3 of Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

Before options are granted, the company secretary, a director, or an authorised agent acting on the company’s behalf may submit details of the company in writing or by email. See details below.

If HMRC is satisfied, on the basis of the information supplied, that the company will be a qualifying company once the options are granted, it will say so in writing. However, whether the requirements for qualification will be met is a question of fact that cannot be known for certain in advance.

If an advance assurance request is made by a company while negotiations for a sale are ongoing, then HMRC will not provide an opinion. This is because if negotiations are ongoing, it is not possible for HMRC to be certain that arrangements are not in place. If Heads of Terms or a Letter of Intent has been signed, then the advance assurance request will be rejected. HMRC compliance teams may carry out further checks if arrangements are believed to be in existence during negotiations.

HMRC can only give an advance assurance about whether the company will meet the qualifying requirements. It cannot give any assurance about other aspects of EMI, such as, whether an individual is an eligible employee or whether an option agreement meets the requirements of the legislation.

Information needed about the company in order to get an advance assurance

  • Registered Office address,
  • Company Registration Number, and
  • Corporation Tax 10 digit reference number.

HMRC will return an advanced assurance application unread if you fail to provide these details, or the assurance is submitted by any applicant other than the company secretary, a director or an authorised agent, we will have to return your request for advance assurance. The agent authorisation for the company to complete can be found at VCM60030.

It is expected that the following documents are enclosed with your application:

  • a copy of the latest available accounts for the company and each of its subsidiaries with a permanent establishment in the UK,
  • an up-to-date copy of the Memorandum and Articles of Association of the company and details of any proposed changes, and
  • details of all trading or other activities carried on, or to be carried on, by the company and its subsidiaries.

Send your application

You can send you application by email or post.

Email your application to [email protected] {#}.

Post your application to:

Venture Capital Reliefs Team
HM Revenue and Customs
BX9 1QL