HM Treasury has issued a new call for evidence about the Enterprise Management Incentive (EMI) scheme.

At a glance

The Enterprise Management Incentive (EMI) scheme is a tax-advantaged share option scheme introduced in 2000 for Small and Medium-sized Enterprises (SME). It aims to support the growth and development of SME’s by helping them overcome disadvantages in the labour market compared to larger companies.

Under this new call for evidence the government is seeking to establish:

  • Whether the scheme is achieving its policy objectives of helping businesses to grow by helping them recruit and retain talent.
  • Whether it should be extended to support high growth companies by allowing larger businesses to participate and how this might work.
  • Whether there are alternative remuneration options that offer the same benefits as EMI to high growth companies.

HMRC data shows that in 2018/19, 3,820 companies granted EMI options to 34,000 employees with 8,000 employees exercising options during the year.

A 2018 survey showed that employers perceive EMI as helping to retain staff and improve morale but in fact there is no measurable effect on staff retention rates. There was evidence that EMI does assist the recruitment of both key workers and higher quality workers.

The call for evidence closes on 26 May 2021, responses should be sent to: This email address is being protected from spambots. You need JavaScript enabled to view it.

Useful guides on this topic

EMI: Enterprise Management Incentive Scheme
What is the Enterprise Management Incentive (EMI) scheme? What's the difference between EMI and an unapproved share scheme?

EMI: Checklist
A checklist to verify if Enterprise Management Incentives (EMI) conditions are satisfied.

Employment-Related Securities & share schemes
What are the tax consequences when a company gives shares to an employee or director? What are employment-related securities? What is best; shares or share options?

External link

Enterprise Management Incentives: Call for evidence 

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