What tax do I pay on EMI options?
On qualifying EMI disposals from 6 April 2026: 18% BADR on qualifying gains, subject to the lifetime allowance and eligibility. Income tax and NICs may apply in other circumstances.
EMI Options Calculator
Enterprise Management Incentive (EMI) options can be tax-efficient, but eligibility matters. For qualifying disposals from 6 April 2026, Business Asset Disposal Relief is 18% on qualifying gains; historical rates were 14% from 6 April 2025 and 10% before that.
Exit scenario
Estimate gross and net proceeds after tax
Illustrative only. UK BADR is 18% from 6 April 2026, 14% from 6 April 2025 to 5 April 2026, and 10% before that. EMI eligibility and tax treatment require professional advice.
How EMI options work
You receive options at a strike price (often nominal). At exit, a qualifying disposal from 6 April 2026 may use an 18% BADR rate on qualifying gains. Non-EMI options may be taxed differently.
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