Are you on the EMI bandwagon?

Enterprise Management Incentive (EMI) schemes have gained popularity recently. With ongoing pressure on salaries and increasing competition for talent, businesses are continuing to explore more strategic ways to attract and retain key employees – and EMI scheme are a great tax efficient way to do just that.

An EMI scheme is a tax-advantaged, HMRC-approved employee share option plan. It allows selected employees to acquire shares in their company at a fixed price and, in turn, employees can benefit from capital gains tax rates on any increase in share value, rather than higher income tax rates.

If you are not already on the EMI Scheme bandwagon, now is a great time to get on board as recent reforms are aimed at making the scheme more accessible and easier to operate.

Key developments include relaxation of certain administrative requirements, greater flexibility in option agreements and continued government support for EMI as a tool for growth, particularly among scaling businesses.

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