We are proceeding at pace. Clause 13 amends the enterprise management incentives, or EMI, provisions to improve the process for granting EMI options by extending the time that participating companies have to notify HMRC of a grant. EMI helps small and medium enterprises to compete with larger firms to attract and retain key talent by bolstering the attractiveness of the share-based remuneration that they can offer to their employees. In the 2021 Budget, the Government launched a call for evidence on the performance of EMI and whether it should be expanded. In the 2022 spring statement, the Government concluded that EMI remains effective and is appropriately targeted. However, the Government listened to those who said that the administrative requirements of the EMI scheme could be improved, particularly the process of granting options. The change we are making will help to address those concerns by making it even easier for companies to use EMI, as requested by industry.

Clause 13 will extend the time limit for a company to notify HMRC of a grant of EMI options from 92 days following the date of grant to 6 July following the end of the tax year in which the grant was made. The change will apply to options granted on or after 6 April 2024. Tens of thousands of individuals are granted EMI options annually, so this measure ensures that companies are given a longer time in which to submit an EMI notification of a grant of options. Individuals will not need to do anything differently. The change is likely to result in fewer late notifications and less possibility of options being disqualified. That will improve how the scheme works for individuals who receive EMI options.