EMI
In this lesson, you'll learn about Enterprise Management Incentives (EMI) — a higher-value share scheme designed for key employees in qualifying companies.
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In this lesson
- 0:00 Enterprise Management Incentives overview
- 0:09 EMI scheme eligibility and limits
- 0:31 Exercise period and company requirements
- 1:07 Tax treatment at grant and exercise
- 1:32 Capital gains tax on share disposal
About this lesson
You'll discover the key eligibility rules, including the £250,000 maximum grant per employee, the requirement that employees own at least 30% of the company, and strict limits on the issuing company (gross assets of £30 million or less, fewer than 250 employees, and trading company status only). The video walks you through the tax treatment: no income tax at grant or exercise unless options are issued at a discount, in which case the discount is taxed as employment income at exercise. You'll also learn how to calculate the chargeable gain on disposal, accounting for any employment income already taxed on the discount. This is essential knowledge for the Taxation papers, particularly when advising on employee incentive structures.
Duration: 2m
Transcript
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