Tax and Employee Share Schemes

5. Enterprise Management Incentives (EMIs)

If you work for a company with assets of £30 million or less, it may be able to offer Enterprise Management Incentives (EMIs).

Your company can grant you share options up to the value of £250,000 in a 3-year period.

You won’t have to pay Income Tax or National Insurance if you buy the shares for at least the market value they had when you were granted the option.

If you were given a discount on the market value, you’ll have to pay Income Tax or National Insurance on the difference between what you pay and what the shares were worth.

You may have to pay Capital Gains Tax if you sell the shares.

Excluded activities

Companies that work in ‘excluded activities’ aren’t allowed to offer EMIs. Excluded activities include:

  • banking
  • farming
  • property development
  • provision of legal services
  • ship building