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Business Legal Services
EMI Share Options: Explore an EMI Share Option for Your Employees
EMI share options and legal advice
Enterprise Management Incentive (EMI) share options are designed to allow companies to provide share options to employees with great tax advantages. Share incentives 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).
We can handle everything from checking whether a company and its employees qualify for EMI and valuing the company’s shares (and agreeing the value with HMRC), to planning and drafting share scheme rules and award agreements which meet the EMI legislative requirements and checking they work with the company’s articles of association and shareholders’ agreements, as well as advising on HMRC compliance, notifying option awards to HMRC and advising on any Companies House compliance, all for as little as £140 per hour.
How can we help you set up an EMI scheme?
Our expert employee share scheme and equity incentives lawyers can help you through every step of setting up an EMI scheme. We will:
Establish that your company qualifies for an EMI share option scheme (and if not, find an alternative approach to providing tax efficient incentives, e.g. growth shares)
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 shares underlying EMI options with HMRC
Review any pre-existing shareholders’ agreements and articles of association to check if any amendments are necessary, or if particular consents are required for introducing the scheme
Prepare board minutes and shareholder written resolutions
Make filings at Companies House
Report the grant of the EMI option to HMRC
Advise on HMRC compliance, including notification of EMI option awards to HMRC and annual on-line reporting
EMI scheme advice
Our team can assist you across all areas of employee share schemes and equity incentives, including:
EMI share option schemes and legal advice: more information
A share option is a right to acquire shares in the future at a price that is fixed at the time of grant, so if the value of the shares underlying an employee share option increases over time employees may receive significant value. Ordinarily employee share options are subject to employment income taxes at the time they are exercised, which can result in large tax charges at the time of an exit. However, 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 (and £3m in total) – which provides relief from income tax and national insurance charges on the exercise of the options. 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.
The sale of the shares acquired on option exercise should then be treated as a capital gain and should be eligible for business asset disposal relief if the option has been held for at least two years. This should significantly reduce the taxes payable by employees at the time of an exit and provide a much more attractive employee share scheme.
Testimonials
What our clients say
Harper James is a brilliant example of a company disrupting a traditional industry. Suddenly Solicitors become relevant and accessible for start-ups & small enterprises, with the best in-class knowledge of all major legal areas. I’ve used the business now for a year, and the Enterprise plan has been perfect for budgeting my company’s outgoings, and has given me a piece of mind when tackling key, decisive issues. Thank-you HJS!
Koral Ibrahim
Founder & MD,
The Ready House
Harper James solicitors don’t speak in the legalese which I have heard too many times from other solicitors and which is totally unhelpful. What I’m after is focused, considered advice about the specific situations that I face. By which I mean, do you think this is a good idea? Their response might be ‘Yes’ or ‘No’. One word is often all I’m looking for! My solicitor gives a view and I really value that.
Tom Davenport
MD & Co-Founder,
Alvius
For us, the support of Harper James Solicitors has been a gift. The collaboration we have had has been of tremendous importance. The service has been superb value for money.
Iraklis Bourantas
COO,
Novoville
Harper James have been incredibly professional and responsive. They immediately understood the challenges we have. Not only those of any small business, but those relating to building a piece of complex tech, and they have been able to help us navigate that from a legal perspective.
Alastair MacGregor
Founder,
Do IT
Over the years Harper James have helped us navigate complex legal issues and red tape, providing distilled options and legal consultancy that far exceeds the service levels we’ve previously experienced from more traditional law firms. The team act like our own in-house counsel so, regardless of which lawyer we work with, we feel supported and that they truly have our best interests at heart.
Michael Edwards
Co-Founder,
Inspire Group
The on-demand service we get from Harper James allows us to combine their expertise with that of our own in-house counsel. It means we can get quick and trustworthy legal advice from specialists in every legal area, as and when we need it. There are no hidden extras and the service we have received has always demonstrated an awareness of our fast-moving commercial requirements.
Amelia Guilfoyle
Head of legal,
Zoopla
Ease of use, a familiar legal team supporting my business who understand my business, and provide value for money.
Daniel Lawrence
CEO,
Bots For That Ltd
It was a pleasure working with Tristan, Matt and James. We are very pleased with the quality of advice and your team's in depth knowledge.
Raymond Lam
Executive Director,
Aeramine Limited
Harper James is a brilliant example of a company disrupting a traditional industry. Suddenly Solicitors become relevant and accessible for start-ups & small enterprises, with the best in-class knowledge of all major legal areas. I’ve used the business now for a year, and the Enterprise plan has been perfect for budgeting my company’s outgoings, and has given me a piece of mind when tackling key, decisive issues. Thank-you HJS!
Koral Ibrahim
Founder & MD,
The Ready House
Harper James solicitors don’t speak in the legalese which I have heard too many times from other solicitors and which is totally unhelpful. What I’m after is focused, considered advice about the specific situations that I face. By which I mean, do you think this is a good idea? Their response might be ‘Yes’ or ‘No’. One word is often all I’m looking for! My solicitor gives a view and I really value that.
Tom Davenport
MD & Co-Founder,
Alvius
For us, the support of Harper James Solicitors has been a gift. The collaboration we have had has been of tremendous importance. The service has been superb value for money.
Iraklis Bourantas
COO,
Novoville
Harper James have been incredibly professional and responsive. They immediately understood the challenges we have. Not only those of any small business, but those relating to building a piece of complex tech, and they have been able to help us navigate that from a legal perspective.
Alastair MacGregor
Founder,
Do IT
Over the years Harper James have helped us navigate complex legal issues and red tape, providing distilled options and legal consultancy that far exceeds the service levels we’ve previously experienced from more traditional law firms. The team act like our own in-house counsel so, regardless of which lawyer we work with, we feel supported and that they truly have our best interests at heart.
Michael Edwards
Co-Founder,
Inspire Group
The on-demand service we get from Harper James allows us to combine their expertise with that of our own in-house counsel. It means we can get quick and trustworthy legal advice from specialists in every legal area, as and when we need it. There are no hidden extras and the service we have received has always demonstrated an awareness of our fast-moving commercial requirements.
Amelia Guilfoyle
Head of legal,
Zoopla
Ease of use, a familiar legal team supporting my business who understand my business, and provide value for money.
Daniel Lawrence
CEO,
Bots For That Ltd
It was a pleasure working with Tristan, Matt and James. We are very pleased with the quality of advice and your team's in depth knowledge.
Raymond Lam
Executive Director,
Aeramine Limited
Why choose our EMI solicitors?
We’re a modern law firm with a difference. Our innovative remote operating model means that you can access expert City-grade legal advice from partner-level solicitors at a fraction of the cost of traditional law firms. Our solicitors have all been recruited from top 100 UK law firms or large international businesses.
Find out more about our employee share scheme and equity incentive lawyers here:
Pricing plans
Legal support designed
to fit your business needs
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:
City
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.
Enterprise
Have legal peace of mind for £209 per month with additional support from £140 per hour.
A monthly subscription legal support package specifically designed for start-ups and smaller businesses.
On-Demand
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.