CR’s Guide To EMI Options

An EMI scheme is a tax efficient, HMRC approved discretionary share option scheme which has proven popular with private and AIM listed companies. It aligns the interest of shareholders and key employees and provides significant tax savings for both the employer company and the employee. EMI schemes are simple and easy to understand and can be implemented and administered at a very reasonable cost.

Which companies qualify to grant EMI share options?

EMI options can be granted by the employer, the trustees of an EBT or any other shareholder provided the following requirements are met:

• the gross assets of the company/group must not exceed £30 million at the time of grant;
• the company (in which the shares are being issued) must not be controlled by another company;