Enterprise Management Incentives Scheme.
The EMI is one of the most attractive share option schemes available in the UK. It offers a cost-effective way of creating loyalty, motivation and securing the long-term services of your core team and key employees. The EMI scheme benefits from favourable tax status where certain conditions are met. At ReesRussell we are able to advise and implement this scheme which will help your company:
- Attract, retain and motivate key employees through Share Schemes
- Retain flexibility and control over many aspects of the Share Schemes you grant (ie subject them to performance measures, time limits and restrictions in the voting rights).
- Improve reported results by providing Share Schemes instead of salary to employees.
- Increase competitiveness by offering a competitive remuneration package.
Key features of the scheme:
- Options over shares worth up to £100,000 – at the date of the grant – can be granted to an employee, and these can be tax and NIC free on the grant and exercise of the option.
- The scheme is available for any number of employees, subject to a maximum of £3 million in total.
- Capital Gains Tax could be payable at an effective rate of tax only 10% if shares are sold more than 2 years after the options were granted.
- The company will get Corporation Tax relief on the costs of operating the scheme.