UK Calculator

EMI Share Options Calculator UK 2025/26

Calculate the gain on your Enterprise Management Incentive options, estimate your CGT or income tax liability and see your net position at disposal.

EMI Share Options Calculator 2025/26

EMI Share Options — Key Facts 2025/26

Enterprise Management Incentives (EMI) are the UK's most tax-efficient share option scheme for small companies. They allow employers to grant options worth up to £250,000 per employee (£3 million total) with highly favourable tax treatment — particularly when Business Asset Disposal Relief applies.

EMI vs Non-EMI Tax Treatment

EventQualifying EMI (BADR)Non-approved Options
On exerciseNo income tax / NICIncome tax + NIC on gain
On disposalCGT at 10% (BADR)CGT at 20% on any further gain
BADR holding period2 years from grant date2 years from acquisition
Employee limit£250,000 per employeeNo statutory limit
Company limit£3m outstandingNo limit

Frequently Asked Questions — EMI Share Options

What is an EMI share option?
An Enterprise Management Incentive (EMI) option is a tax-advantaged share option scheme for qualifying small companies. Key employees can be granted options to buy shares at today's value, with potential CGT-only treatment on gains.
How much can be granted under EMI?
Up to £250,000 worth of options (at market value at grant) per employee. Total outstanding EMI options across the company must not exceed £3 million.
What companies qualify for EMI?
Independent trading companies with gross assets of £30 million or less and fewer than 250 full-time equivalent employees. Certain excluded activities (banking, farming, property development, legal services) do not qualify.
What is the tax treatment of qualifying EMI options?
For options granted at market value, no income tax or NIC arises on exercise. The gain from exercise price to sale proceeds is subject only to CGT. If held 2 years from grant, Business Asset Disposal Relief at 10% may apply.
What if EMI options are granted at a discount?
If the exercise price is below the HMRC-agreed market value at grant, the discount is treated as employment income subject to income tax (and possibly NIC) on exercise.
What is Business Asset Disposal Relief on EMI?
BADR taxes qualifying gains at 10% rather than the standard 20% CGT rate. For EMI, the 2-year period runs from the grant date — a major advantage over non-EMI shares where it runs from acquisition.
How do I value shares for EMI purposes?
You should agree an Unrestricted Market Value (UMV) with HMRC before granting options. HMRC's Share Valuation team will agree valuations in advance, giving certainty on the tax treatment.
What happens to EMI options if the company is sold?
EMI options can typically be exercised before a sale completes, or rolled over into equivalent options in the acquiring company. Tax treatment depends on the specific deal structure.
Can EMI options be granted to directors?
Yes — directors who work at least 25 hours per week (or 75% of their working time) in the company qualify, provided other conditions are met.
What is the EMI notification requirement?
HMRC must be notified of EMI grants within 92 days of the grant date via HMRC's Employment Related Securities online service.
What happens if the company loses EMI-qualifying status?
Outstanding options become disqualifying. Options exercised within 90 days of a disqualifying event retain EMI treatment; after 90 days they are taxed as non-approved options.
Do I need to report EMI options on my Self Assessment?
Yes — you must report exercised EMI options on your Self Assessment return. Any CGT arising must be reported on your SA return for the tax year in which you disposed of the shares.