EMI options can help attract, retain and motivate the very best talent in your industry, while benefiting from one of the most tax-efficient employee incentive schemes available to UK companies.
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Enterprise Management Incentive (EMI) schemes are a popular and highly effective way to offer equity rewards to key team members in a flexible, tax-efficient manner.
At Gravitate, we help you determine if EMI is the right fit for your business, and we then support you through every step of the setup and implementation process. Our approach will ensure your scheme is tailored, compliant, and delivers maximum value.
Enterprise Management Incentive (EMI) schemes are one of the most effective and tax-efficient ways to reward and retain key employees.
Backed by generous government tax reliefs, EMI options allow team members to acquire shares at a future point (often during a business sale) with no Income Tax or National Insurance on exercise and only Capital Gains Tax payable if the right conditions are met.
EMI schemes are also highly flexible, meaning you can set custom vesting, performance, and exit conditions that align with your commercial goals. They’re particularly valuable for growth-focused businesses that want to drive loyalty and reward success without giving away immediate equity.
Before implementation, we’ll conduct a detailed review of your business and commercial goals to ensure EMI is the right scheme for you. We’ll consider qualifying criteria, company structure, future plans and employee roles to assess suitability and identify any red flags early on.
We will design a bespoke scheme that supports your objectives, such as staff retention, performance, or transaction-readiness. This includes option terms, exercise conditions, vesting schedules and share classes. We will ensure they’re all commercially appropriate and HMRC-compliant.
We’ll also provide you with a defensible share valuation and agree this in advance with HM Revenue & Customs. This robust process will mitigate company risk and apply safeguards against unnecessary tax liabilities to provide peace of mind to both employer and employee. Due to the connected nature of Gravitate’s services, this is all done in house!
Through our trusted legal partners, we’ll manage the drafting of option agreements, board minutes, scheme rules, and any updates required to your Articles of Association. We oversee the entire process to make sure your scheme is watertight and aligned with current legislation.
We’ll help you take full advantage of the generous tax benefits available through EMI schemes and make sure all qualifying conditions are met. We can also ensure your scheme is optimised for Capital Gains Tax. Finally, we can manage all EMI-related reporting to HMRC.
EMI options sometimes crystallise at an exit event, such as a business sale. We’ll support you and your employees throughout the lifecycle of the scheme, advising on exercise mechanics, tax implications, and how to maximise value upon a triggering event.
At Gravitate, we combine experience, commercial acumen, and modern digital processes to deliver EMI schemes that work for you. We’ll ensure your scheme is not only fully compliant but strategically aligned with your growth and retention goals.
Whether you are implementing EMI for the first time or refining an existing scheme, our team will make the process simple and stress-free. From initial eligibility to long-term exit planning, Gravitate is your dependable partner in building a share option strategy that motivates and rewards your team while driving business growth.
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