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Entrepreneurs Relief and EMI schemes - do I need both?
philiphodges
Posts: 12 Forumite
in Cutting tax
I am director in a start business (and employed on a nominal salary). As investor, under SEIS/EIS I already own 2.5% of the business.
We have agreed that I will take share options which will give me a further 10% share of the company.
It is the expectation that we will sell the business in three years when I exercise the options.
Is there an advantage to putting the options within an EMI or will I get the same benefit from exercising Entrepreneurs Relief without an EMI scheme?
Thanks in advance.
We have agreed that I will take share options which will give me a further 10% share of the company.
It is the expectation that we will sell the business in three years when I exercise the options.
Is there an advantage to putting the options within an EMI or will I get the same benefit from exercising Entrepreneurs Relief without an EMI scheme?
Thanks in advance.
0
Comments
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The danger of not using something like an EMI scheme is that you get an income tax bill, and there is no entrepreneur's relief against that. See:
https://www.gov.uk/tax-employee-share-schemes/enterprise-management-incentives-emis
1
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