Employee Share Options

The Enterprise Management Incentive (EMI) is a government-backed scheme that allows you to offer tax efficient share options in your company to your staff.

If you’re a high-growth company, expecting to be bought by investors within five to ten years, then you should take advantage of EMI.

The ability to offer flexible and tax advantageous share options to staff obviously allows you to recruit and retain the best candidates. 

Under EMI your employees can buy future shares in your company at the current market price, which if you’re growing steadily is a very attractive deal.

Your employees are taxed only when they sell the shares – for example, to an investor who purchases the whole company. They are also protected by Entrepreneurs Relief, which means they pay a maximum 10% tax rate on any gain from share sales. Your company also receives a Corporation Tax deduction on the value of shares sold to employees.

It’s a complicated area, but – if you qualify – very valuable to you and your company.

We help you by:

Assessing your suitability for EMI

Advising you on how best to maximise your gain

Dealing with all red tape

Filing annual EMI documentation, as required by HMRC

Get in touch today for a free initial consultation.

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