EMI options are a form of option which benefit from very generous tax reliefs. The conditions relating to the company, the optionholder and the option agreement are quite complex. Technical errors are, unfortunately, relatively common, and often only discovered on a due diligence process as part of a funding round or exit. While certainly not exhaustive, this guide explains the most common errors we see made by companies with EMI schemes. Its purpose is to enable companies to identify any issues before they arise in a transactional context and to deal with them at the earliest possible stage.
Our international share schemes and incentives team advises on the design, legal and tax aspects of reward programmes for companies from pre-seed startups to global multinationals. If you would like more detail on any of the issues above, or to discuss how your incentive schemes can address your changing remuneration needs as your company grows or as you prepare for your next round of financing, please contact Ian Shaw or Jamie Moore.