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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

Enterprise Management Incentives (EMI): General requirements: Maximum individual limit

An employee may be granted qualifying options over shares with a total value of £250,000. The £250,000 limit applies from 16 June 2012; prior to that date, the individual limit was £120,000.

The shares under option include all EMI options granted by the employing company and any companies that are members of the same group of companies. The value of the shares under option for this purpose is the value of the shares at the time the option was granted.

Any options granted in excess of this limit are not qualifying options in so far as they relate to the excess. If an option is granted that exceeds £250,000 limit (£120,000 for any options granted before 16 June 2012) the option will be a qualifying option up to the individual limit and the excess will not be a qualifying option and so will not have any tax advantages, (Paragraph 5(3)).