Retaining and motivating staff is an important issue for many employers. Research in the UK and USA has shown a clear link between employee share ownership and increases in productivity.
The government has therefore introduced a variety of ways in which an employer can provide mechanisms for employees to obtain shares in the employer company without necessarily suffering a large tax bill. EMI can be one of the most tax efficient and flexible means available. To be eligible, companies must have gross assets of £30 million or less and must meet a number of other qualifying conditions.
Read this fact sheet "Share Ownership for Employees EMI" to find out more about:-
What EMI offers?
- How does it work ?
- What are the tax benefits to employees ?
- What are the benefits to employers ?
Points to consider:-
- Does the company qualify?
- Which employees are eligible and who should be issued options?
- What type of shares will be issued?
- When will the rights to exercise options arise?
If you would like to discuss EMI and share ownership for your employees, please do get in touch with DRG Chartered Accountants' tax team. We would be delighted to hear from you.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.