What is an EMI Share Option?

EMI options are share options that are granted to employees under an HM Revenue & Customs (HMRC) approved scheme. They offer important tax advantages to employees that are not available in respect of unapproved options (i.e. a non-EMI option).

The grant on an EMI option is free of income tax and there will usually be no income tax or National Contributions for the employee to pay when the option is exercised. Also, there will usually be no National Insurance contributions for the employer on the grant or exercise of the option.

EMI options are particularly suitable for small and medium sized companies operating in the UK that wish to provide incentives to their employees. They are designed to help these companies recruit and retain employees who will contribute to the success of the company.

There are a number of conditions that must be satisfied for an option to qualify as an EMI option. Please read our EMI Share Option Guide for details