EMI Options – How To Get Them Right

Enterprise Management Incentive (EMI) plans are an excellent mechanism for employers and employees – when used correctly. There are a few ways that things can go wrong so it is important for businesses to ensure they get the right support when implementing an EMI plan. The changes in the Autumn 2025 Budget significantly expanded the scope of companies who might qualify. To assist companies who are thinking of setting up an EMI plan for the first time, we look at some of the most common issues and how to avoid falling into these traps.

Valuations

One of the main benefits of EMI plans is that they are tax advantaged. When done correctly, there is no income tax or national insurance contributions (NICs) chargeable on exercise and instead gains are considered under the more favourable capital gains tax regime. However, this income tax/NICs relief only applies to any growth in value from the date of grant and so understanding what the market value is at the date of