What does the EMI share scheme really mean?

May 30, 2022

For UK start-ups, these are the most flexible, suitable, and beneficial employee share schemes. You grant options to your employees. And they can receive and exercise share
options free of:

  • Income Tax and
  • National Insurance

And when they sell their shares, an employee pays potentially only 10% in tax on the difference between:

  • The set share price at which they received the options and
  • The actual market value of the shares

What are the features?

  • You issue options for employees to buy shares, not shares themselves.
  • Generous £250K limit of options per employee and £3m for the company.
  • Your company must be independent with gross assets of less than £30m and less than 250 employees. It also excludes certain sectors such as financial services or property development.
  • Allows your company to set conditions based on time, profit or sales targets or anticipating an early exit.
  • Different conditions can apply to target key employees.
  • The class of shares is highly flexible.

What support can gunnercooke offer?

Amongst others we can help you decide if your company qualifies, how you might issue shares to your employees, where required we can work with you and your accountants and of course draft all legal documentation.

To speak with us regarding EMI schemes or any other form of employee share scheme, please contact Simon Williams ([email protected]) or Alex Connah ([email protected])