EMI Share Option Scheme

Enterprise Management Incentives (EMI)

The Enterprise Management Incentive (EMI) scheme is one of the UK’s most tax-efficient ways to reward and retain key employees by giving them a stake in your company’s success. CBM Accounting helps you design, implement, and manage EMI schemes that align employee incentives with business growth — while maximising tax benefits for both the company and its employees.

EMI options allow employees to acquire shares at a pre-agreed price, with gains taxed at the lower Capital Gains Tax rate (as low as 10% with Business Asset Disposal Relief) rather than income tax rates of up to 45%.

Our EMI Services

• EMI scheme eligibility assessment for your company
• Share valuation and agreement with HMRC (via advance assurance)
• EMI option agreement drafting and structuring
• HMRC notification within the 92-day deadline
• Annual EMI return filing with HMRC
• Exercise of options — tax calculations and reporting
• Section 431 election advice for restricted shares
• Exit planning and disposal relief optimisation
• Employee communication and scheme documentation

Who Qualifies for EMI?

• Company must have gross assets under £30 million
• Fewer than 250 full-time equivalent employees
• Company must be an independent trading company
• Employee must work at least 25 hours per week (or 75% of working time)
• Each employee can hold up to £250,000 in EMI options
• Company-wide limit of £3 million in unexercised EMI options

Tax Benefits

For employees, gains on EMI shares are subject to Capital Gains Tax rather than income tax, and may qualify for Business Asset Disposal Relief (10% CGT rate on the first £1 million of lifetime gains). For the company, there are no National Insurance contributions on the gain, and corporation tax deductions may be available when options are exercised.