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EMI Share schemes
Wish your employees would care about your business as much as you?

An EMI share option scheme could be the answer

If you want to inspire your employees to become more productive, accountable and to think more like you, a tax advantaged employee share option scheme like the EMI could be what you need. It’s a proven and highly tax efficient way to motivate, incentivise and reward your key people, giving them a chance to share in the financial success of your business.

EMI, the Enterprise Management Incentive share option scheme, is one of the best and most popular share schemes available. It offers lots of tax advantages to employees and business owners alike. As an HMRC approved share option scheme, it gives selected employees the future right to buy company shares at a fixed price. When the value of the shares increases, those employees can make a significant gain when the shares are sold, paying just 10% tax in many cases.

Does your company qualify?

  • Gross assets up to £30m
  • Qualifying trading business
  • Independent company
  • Permanently based in UK
  • Less than 250 employees
  • Ordinary shares issued as options

Meet Susie, she’s the marketing manager at ABC Consultancy Ltd and was awarded EMI share options worth £5,000.

When the company was sold, she exercised her options and sold her shares for £50,000, making a capital gain of £45,000. Susie only paid £4,500 on the total gain, but without the EMI scheme, she could have faced a tax bill of up to £20,250, wiping out a large proportion of her hard earned gains.

Benefits of an EMI share option schemeAs a company owner, EMI share options also give you a lot of flexibility. You can decide which employees should be granted the options and how many, when they should be entitled to ‘exercise’ their options or sell their shares, and whether there should be performance related conditions attached to their entitlement, plus what should happen if the employee decides to leave the company.

A win win for the company and employees

  • Tax efficient for the employee – no income tax or national insurance payable and gains are usually taxed at 10%;
  • Tax efficient for the company – no national insurance and corporation tax relief available when options are exercised.

Why choose RJP to establish EMI share options?

RJP has many years’ experience in advising on EMIs, agreeing share option values with HMRC, guiding companies and employees through the process, and preparing all the necessary paperwork. We can give you expert advice and take care of all the aspects of establishing the best tax advantaged share scheme for your needs.


    60 Day Deadline for CGT Returns and Tax Payments

    If you sell a property and incur capital gains tax on the transaction, you will need to file a tax return and also pay any tax that is due within 60 days of completion, or penalties will arise. Need help with your property taxes? Talk to us.