Startup Equity Tax in the UK

UK startup equity tax depends on scheme type. For qualifying disposals from 6 April 2026, BADR 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

Exit valuation (£)

Your ownership (%)

Tax rate (%)

UK EMI qualifying disposal (relief rate applied to qualifying gain)

Expected disposal date

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.

Share count (optional)

Strike price per share (£, optional)

EMI vs unapproved options

EMI requires company size limits, independent valuation, and HMRC notification. Unapproved options are simpler for companies but far more expensive for employees at exercise and exit. Check your grant agreement scheme type before modelling tax.

Frequently asked questions

Do I pay tax when I receive startup options?

Usually not at grant for EMI if strike price equals market value. Tax is typically due on gain at sale (EMI) or at exercise (many unapproved schemes).

What is the EMI tax rate on exit?

18% on qualifying gains for qualifying disposals from 6 April 2026, subject to eligibility. Use our EMI calculator to model a specific exit scenario.