John McLean and Lauren Long spoke at our General Counsel Know-How series on share options and growth shares.
Read some quick takeaways from the session below and you can watch the full recording of the session here.
Why Equity Incentives Matter
EMI schemes help attract, retain, and reward talent. They let employees buy shares at today’s value later, while offering businesses a tax-efficient growth incentive.
Unpacking the Tax Benefits
EMI schemes avoid income tax and NIC at grant, with CGT as low as 10% (for now) on eventual sale—a win-win for all.
Who Qualifies?
Companies must have:
- Gross assets – less than £30M
- less than 250 employees
- Dedicated, eligible team members.
Founders & major shareholders (30%+ equity) don’t qualify, making this ideal for incentivising key staff.
Growth Shares as an Alternative
For those that don’t meet EMI criteria, growth shares can offer similar benefits- allowing participation only in future value growth, though require a meticulous company valuation to satisfy HMRC requirements.
Avoiding Pitfalls
Timely filings, proactive monitoring, and expert advice are essential to avoid disqualifications and ensure compliance.
About Ignition Law’s General Counsel Know-How series
Ignition Law’s General Counsel Know-How webinar series delivers technical legal insights designed to make a real impact. Originally created to upskill our team, we found these sessions would provide valuable guidance for in-house counsel, seasoned entrepreneurs, and business leaders too—so we now ask our clients and network to join as well. Focused, practical, and technical, these webinars help you navigate legal challenges and stay ahead.
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