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Sector
Enterprise Management Incentives (EMI)
Key facts:
EMI schemes are by far the most popular and flexible tax advantaged scheme. Under an EMI scheme, employees are granted options which they can exercise and “turn into” shares. The exercise of the options can be made subject to conditions to be met by each employee. It is not necessary to get the prior approval of HMRC or create any employee trusts. Therefore EMI schemes tend to be relatively straightforward to set up.
EMI schemes can only be offered by certain types and sizes of companies. The option itself must meet certain statutory requirements and there is a limit (currently £120,000) upon the maximum initial (unrestricted) market value of the shares over which an employee can hold unexercised EMI options.
Who can benefit?
Only full time employees can be given options under an EMI scheme. However, an EMI scheme does not have to be offered to all employees, meaning that the EMI scheme can be used as a way to incentivise key employees.
Key team contact
Emma Cameron 01923 690038
emma.cameron@mablaw.com
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