Enterprise Management Incentive (EMI) share option schemes offer a flexible, tax-advantaged way to incentivise key employees.
EMI Share Option Schemes: Tax-Efficient Incentives for Growing Companies
Enterprise Management Incentive (EMI) share option schemes are designed to help small and medium-sized UK companies attract, motivate, and retain top talent. These schemes allow selected employees to acquire shares in the company at a fixed price, typically the market value at the time the options are granted. As the company grows, so does the potential value of those shares—making EMI options a powerful reward mechanism.
Why Choose EMI?
- Tax efficiency: Employees typically pay no Income Tax or National Insurance when options are granted or exercised, provided conditions are met. Capital Gains Tax may apply on sale, often at a reduced rate.
- Discretionary allocation: You choose which employees receive options and how many—giving you full control over your incentive strategy.
- Retention tool: Options can be structured to vest over time or upon meeting performance milestones, encouraging long-term commitment.
- Control preserved: Shares issued under EMI can include restrictions to prevent transfer or voting rights, ensuring founders retain control.
Our Services
We offer comprehensive support to set up and manage your EMI scheme:
- Initial consultation to assess eligibility and strategic fit
- Share valuation and HMRC liaison
- Ongoing compliance and reporting
- Exit planning and tax optimisation
At Green Accountancy, we are dedicated to supporting purpose-driven entities in achieving their financial goals and maintaining well-managed finances. Our tailored approach ensures that your organisation can focus on its mission while we take care of the financial details.
Ready to explore EMI options for your team?
Get in touch today to book a free initial consultation and discover how EMI can help you build a stronger, more committed workforce.
