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To access legal support from just £125 per hour arrange your free no-obligation initial consultation to discuss your business requirements.
Enterprise Management Incentive (EMI) share options are designed to allow you to provide share options to your employees, with great tax advantages. Shares are popular with high-growth and high-risk companies, like tech start-ups, as a way to attract, reward, and retain hard working staff right through to an exit (such as the company being sold).
If the value of the shares increases over time after the grant of the options, employees may make significant gains. Provided certain conditions are met, a company can set up an EMI scheme to grant share options worth up to £250k to each employee/director – without paying income tax or national insurance on the exercise of the options.
We can handle everything from checking whether your company and employees qualify and valuing your shares (and agreeing the value with HMRC), to planning and drafting share scheme rules and award agreements, as well as registering the plans with, and notifying options to, HMRC, all for as little as £125 per hour.
Our expert employee incentive lawyers can help you through every step of setting up an EMI scheme. We will:
Establish that your company qualifies for a share option scheme (and if not, find an alternative approach to qualifying or creating an EMI option)
Apply for advance clearance from HMRC that your company qualifies to grant EMI options
Design and draft the EMI scheme rules and share option agreements
Agree on a valuation of the EMI shares with HMRC
Review any pre-existing shareholders’ agreements and articles of association agreed upon to check if any amendments are necessary, or if particular consents are required for the scheme
Prepare board minutes and shareholder written resolutions
Make filings at Companies House
Report the grant of the EMI option to HMRC
Advise you how to run the share scheme, help you with annual HMRC reporting, etc. if you wish
EMI share option schemes are a way of offering your employees a legal right to later purchase shares with very favourable tax treatment. The value an employee can realise will increase in proportion to any growth in the value of the shares after the option is granted, so this is an ideal way to align employees’ interests with the company’s/shareholders’.
An EMI option is subject to an overall maximum limit of £3M worth of shares under options at any time. On the sale of shares acquired as a result of an exercise of an EMI option, any increase in the value of the shares will be treated as a capital gain and capital gains tax may be payable on the gain (subject to the availability of various exemptions and reliefs). The company should also benefit from a corporation tax deduction when the EMI options are exercised equal to the value in the options at the date of exercise.
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Find out more about our employee incentives lawyers here:
Our three transparent pricing packages are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:
Straightforward access to senior solicitors at a competitive rate.
An affordable solution for businesses needing one-off legal support. Receive ‘City’ partner-level expertise at a fraction of ‘City’ prices.
Have legal peace of mind for £189 per month with additional support from £125 per hour.
A monthly subscription legal support package specifically designed for start-ups and smaller businesses.
Providing you with priority access to a dedicated panel of highly experienced solicitors.
Fully account managed quarterly subscription service for businesses with more complex legal needs.
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