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Where Taxpayers and Advisers Meet

Enterprise Management Incentive Scheme

graking91
Posts:1
Joined:Fri Oct 18, 2019 10:40 am
Enterprise Management Incentive Scheme

Postby graking91 » Fri Oct 18, 2019 10:51 am

Whilst this is not strictly a pure tax enquiry it relates to an EMI scheme I am considering setting up for my employees. I just do not know how to calculate the number of shares to award my employees. I have read a lot about how the schemes operate but not much how you calculate the number of shares. I have considered linking to salary and seniority but is there a formula that is regularly used?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Enterprise Management Incentive Scheme

Postby darthblingbling » Fri Oct 18, 2019 12:09 pm

I believe it's completely descretionary

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Enterprise Management Incentive Scheme

Postby AdamS93 » Sun Oct 20, 2019 10:40 am

As long as your conditions don't breach the EMI conditions found in Sch5 ITEPA 2003 you're good to go.

As for a standard formula, there isn't one. There is no one size fits all as some EMI companies will have assets of <£1m and some up to £30m.


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