Enterprise Management Incentive

The Enterprise Management Incentive scheme enables employers to give their employees tax-free shares as a reward for their efforts. If you are an employee receiving Enterprise Management Incentive options, you are agreeing to buy shares in the future at a set price, known as the strike price. Through this scheme, you don’t need to pay Income Tax or National Insurance when you buy shares for the strike price, and you pay a reduced rate of Capital Gains Tax if you sell the shares for a profit.

Frequently Asked Questions

  • What is Capital Gains Tax?

    Capital Gains Tax is a charge payable when you sell shares in a business and make a profit. By reducing the rate of tax you have to pay when you sell shares, you get to keep more of that profit!

  • Does the Enterprise Management Scheme affect my profits?

    Absolutely! Without being a part of the scheme, you’d be liable for Income Tax and National Insurance on your profits, so you would be making considerably less after tax and insurance.

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