EMI option schemes: HMRC statistics and why they matter in 2025

Employee share schemes and options are powerful tools for businesses looking to reward and retain key talent. Among the four tax-advantaged share schemes available in the UK— SAYE, SIP, CSOP, and EMI —the Enterprise Management Incentive (EMI) scheme stands out as the most flexible and impactful for early-stage and high-growth companies.

On 26 June 2025, HMRC published updated statistics for the tax year ending 2024, reaffirming the dominance and strategic value of EMI schemes within the startup and scale-up landscape. Here's what the data—and our analysis—reveals.

Why EMI matters

SIP, SAYE, and CSOP schemes are more commonly used by larger, later-stage companies with mature HR systems. SIP and SAYE must be offered to all eligible employees on similar terms, which adds complexity and administrative overhead. CSOPs, while suitable for private companies that do not qualify for EMI, offer less flexibility and fewer tax benefits.

In contrast, EMI is specifically designed for smaller, agile businesses. It offers greater flexibility, higher individual limits, and significant tax advantages—making it the go-to share scheme for high-growth firms seeking to attract and retain top talent.

What the latest HMRC data shows

HMRC’s 2023–2024 data focuses on four key areas: company usage, tax relief and gains, value of options, and exercise trends.

Company usage

• 89% of companies using tax-advantaged share schemes operated an EMI scheme—by far the most common.

• 99% of those companies did not use any other scheme alongside EMI, highlighting its effectiveness as a standalone solution.

This reflects EMI’s strong suitability for startups and scale-ups.

Tax relief and gains

• Historically, EMI was the largest contributor to Income Tax (IT) and National Insurance contributions (NICs) relief.

• In the 2023–2024 tax year, SAYE overtook EMI in total tax relief, due to higher participation and rising asset prices post-Covid.

• However, EMI continues to offer the highest average tax-relievable gain per exercise event of all four schemes.

Value of options

• The average value of EMI options granted was £12,340 in 2024.

• This compares with £6,070 for SAYE and £220 for SIP, reflecting EMI’s higher limits and individual focus.

• While EMI did not record the highest total value of options granted, it delivered the highest value per individual award.

Exercise trends

• The number of EMI options exercised was significantly lower than the number granted in 2024—a trend consistent with previous years.

• This is typical of EMI, where exercise depends on:

  • Strong company performance

  • Favourable financial outcomes

  • Continued company operations

• Fewer exercises can also result from a fall in share value or company closures.

What are EMI option schemes?

EMI schemes give employees the right to acquire shares at a fixed price under certain conditions, as set out in an option agreement. These terms often include length of service, performance milestones, or an exit event such as a sale.

Key features

• Option terms: Agreements specify how many shares can be bought, at what price, and under which conditions.

• 10-year window: Options must be capable of being exercised within 10 years of the grant.

• Vesting conditions: Time-based or performance-based vesting is common, giving companies flexibility to align rewards with long-term outcomes.

Who can use EMI?

For companies

To qualify for EMI, your company must meet the following criteria:

• Gross assets: Must not exceed £30 million

• Employee count: Fewer than 250 full-time equivalent employees at the time of grant

• Trading status: Must be actively trading in the UK (excluded activities include finance, property investment, legal services, etc.)

• Independence: Must not be controlled by another company

• Total EMI allocation: Cannot exceed £3 million in unexercised options

For employees

To be eligible, employees must:

• Be legally employed by the company or a qualifying subsidiary

• Work at least 25 hours per week, or if less, at least 75% of their total working time for the business

• Not hold more than 30% of the company’s share capital prior to the grant

Why EMI is so tax-efficient

For employers

• No employer NICs due on grant or exercise (provided conditions are met)

• Corporation Tax relief is available on the difference between the market value at exercise and the price paid by the employee

For employees

• No Income Tax or employee NICs on grant or exercise (subject to qualifying conditions)

• Capital Gains Tax (CGT) at a reduced rate of 10%, provided shares are held for at least two years and qualify for Business Asset Disposal Relief

This combination offers significant savings for both parties—far more efficient than cash bonuses or non-tax-advantaged options.

Strategic benefits for startups

EMI schemes offer more than just tax efficiency—they are a strategic tool for building high-performing teams.

• Retention: Options typically vest over several years, encouraging long-term commitment

• Motivation: Employees gain a direct stake in the company’s success

• Recruitment: Offering equity can help attract top talent in a competitive hiring market

• Culture: Ownership often leads to stronger engagement and alignment with company goals

How to set up an EMI scheme

Setting up an EMI scheme involves designing your option plan, valuing your company, and registering the scheme with HMRC. While it’s important to get professional advice, platforms like ours make the process simple and cost-effective.

See our Share Options Guide for a step-by-step explanation of how to launch your EMI scheme.

Conclusion

The latest HMRC statistics confirm what many in the startup world already know: EMI remains the most popular and powerful share scheme for growing UK companies. It offers flexibility, targeted rewards, and substantial tax benefits—all while aligning the ambitions of founders, investors and team members.

For any business looking to scale with purpose, EMI is not just a tax break—it’s a strategic advantage.