Enterprise Management Incentive (EMI) share schemes
EMI share schemes account for over 90% of all employee shares schemes in the UK. EMI options can be granted to eligible employees and directors. If the exercise price is at least equal to the actual market value of a company’s shares on the date options are granted (which is generally agreed with HMRC in advance), there will be no income tax to pay on grant or on exercise and if the options are held for at least 2 years before a sale, capital gains tax will be payable at a reduced rate of 10%. For this reason, EMI schemes are the go-to share scheme for most fast-growth businesses.