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HMRC has published updated guidance on managing the impact of COVID-19 on SAYE and EMI arrangements in its March 2021 Employment Related Securities bulletin.

SAYE

HMRC has confirmed that the payment holiday extension (under which employees on furlough or unpaid leave during the COVID-19 pandemic can postpone more than 12 contributions to their savings contract) continues to apply.  HMRC is keeping the position under review.

EMI

Finance Bill 2021 contains provisions applying a modification to the EMI rules for a period ending on 5 March 2022.  The change to the legislation allows the grant of EMI options to employees who would ordinarily have met the working time requirements but did not do so because they were on furlough, working reduced hours or on unpaid leave due to the coronavirus pandemic, provided that the conditions for granting EMI options would otherwise be met.  An equivalent approach applies when considering an employee's reduction in working time for the purposes of determining whether there has been a disqualifying event.

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