What tax do I pay on EMI options?
On qualifying EMI disposals: 10% on gains (with £1m lifetime BADR limit). Income tax and NICs may apply at grant if strike price is below market value.
EMI Options Calculator
Enterprise Management Incentive (EMI) options are the most tax-efficient way for UK startups to grant equity. Qualifying disposals are taxed at 10% (Business Asset Disposal Relief) on gains up to £1m lifetime limit.
Exit scenario
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How EMI options work
You receive options at a strike price (often nominal). At exit, you pay 10% tax on the gain (exit value minus strike price) if EMI conditions are met. Non-EMI options may be taxed at up to 45% as income.
Frequently asked questions
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