If you’re looking to motivate, reward and retain key employees, Enterprise Management Incentives (EMI) could be your secret weapon. These HMRC‑approved share options offer exceptional tax advantages and strong alignment between your team and your long-term vision.
Our experts break down how EMI schemes work – from eligibility to execution.
Why EMI is such a compelling proposition:
- Tax-friendly at grant and exercise: No Income Tax or National Insurance if options are issued at or above market value
- Capital Gains benefits: After two years, gains may qualify for Business Asset Disposal Relief at just 14% on first £1m gains (2026/27 18%)
- Size limits perfectly suited to SMEs: Qualifying companies must have ≤ 250 employees and assets under £30 million. Individuals can receive up to £250k of EMI options within a three-year period
- Flexible and aligned: Vesting can be tied to performance or service milestones, helping to retain talent and drive results
- No upfront tax burdens: Employees pay nothing at the point of grant or exercise (if conditions are met), preserving cash flow for your team
EMI schemes not only offer generous tax relief for your staff but also deliver corporation tax deductions for businesses. And because they require advance assurance from HMRC, there’s clarity up front about valuations and eligibility.
Want to learn more? Our in‑depth EMI brochure outlines qualification criteria, tax rules, potential pitfalls, and best‑practice implementation that can help you build a motivating share plan. Dig into the details by filling out the form.
Building an ownership mindset through EMI isn’t just smart – it can be game‑changing for growth-oriented businesses. Get in touch for dedicated guidance on setting up a bespoke EMI plan that aligns with both your vision and tax strategies.
Want to know more?
Fill in the form to receive your free copy of our EMI share option scheme guide.
