HMRC in a spin over academics’ shares

28th January 2013

Sophie Brookes

HMRC has announced that it is going to review the treatment of academics' shares in university spin-out vehicles set up to exploit innovative research work. The government hopes that a review in this area will stimulate activity by making these structures more attractive to those responsible for the pioneering work on which they're built.

Towards the end of 2012, HMRC carried out a consultation on extending the ‘enterprise management incentive’ (EMI) option scheme to academics employed by a qualifying company. However, as a result of the responses to that consultation, the government has decided not to press ahead with those changes but instead will review the tax rules around research institution spin out companies. The respondents to the consultation identified this as a more significant consideration for the research sector than the availability of EMI options.

The new consultation is due to take place in the run up to Budget 2013. For more information, see the Summary of Responses( published last month by HMRC following its earlier consultation.

If you have any queries or would like to discuss any of the issues raised, please contact Sophie Brookes on 0161 836 7823 or email

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