The EMI individual limit increase from £120,000 to £250,000 announced in the 2012 Budget will come into effect on 16 June 2012.
Accordingly, qualifying companies may from 16 June 2012 grant EMI options to employees over shares with a value up to £250,000. Companies which have already granted EMI options up to the existing maximum of £120,000 will be able to grant additional options to relevant employees up to the new maximum provided the existing rules of the EMI plan do not expressly limit the maximum grant of options to £120,000. In the event the existing EMI rules contain such a limitation, an amendment to the rules will be necessary to enable the grant of EMI options up to the increased limit.
A tax advantaged option package over up to £250,000 of shares will certainly be a valuable incentive for anyone joining this kind of company.