EMIs, Enterprise Management Incentive Schemes (EMIs) are  aimed at smaller businesses – those with less than 250 employees. They benefit from statutory tax relief so staff aren’t liable for income tax or national insurance (NI) on their gains.

Company Share Option Plans (CSOP) also offer generous tax advantages and, unlike with EMIs, there is no upper limit on employee numbers or company size. But, from a taxation perspective, they are less flexible than an EMI and carry more restrictions.

Share Incentive Plans (SIP) can be held for five years without the shareholder having to pay income tax or NICs. They may become eligible for capital gains tax, (CGT) though, when sold at a profit. 

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