Employee share incentives

What are the tax implications of EMI shares for employees?

• Tax advantaged if exercised within 10 years

• No income tax unless granted at a discount

• CGT on sale price less consideration paid

• BADR available if held for at least 2 years

What are the tax implications of EMI shares on the employer company?

Tax deduction on the market value of shares at exercise less remuneration paid by employee.

What are the conditions for issuing EMI shares?

• An employee cannot hold more than £250,000 EMI share options

• Max number of shares granted under EMI is £3 million

• Must be exercised within 10 years to be tax advantaged

• Company must be a small trading company - sets not exceed £30 million and 250 or less full time employees

• Part time employees can qualify but certain working criteria must be met

.

.