EMI share scheme - anyone know about them?

[Chocolatedays]

Thank you for all the help on the what else to ask for in the package (seperate thread) - I've now been emailed to say they are setting up an EMI scheme... I've heard of EBTs but can anyone tell me the good, bad or ugly of EMI schemes.
Thanks!

Guess that is a no then!

EMI are quite good news as they are part of a tax favoured HMRC option plan.
Basically you're getting an opportunity to buy cheap shares in your company , not pay for them now and potentially pay low rate of tax when you sell them (but not have to outlay the cash until you want to sell). So good news if you think your company is going places.

you get share options (so you don't actually have to outlay for shares now) but they are treated like shares for capital gains purposes. This means you can get taper relief (something that means you can pay really low capital loans tax when you sell them if certain conditions are met) from day you get the share options. This is different to other share options (where you only get treated as owning the asset when you exercise the options). What is really good is that potentially you dont usually pay any income tax either when you get the share options or when you exercise them so if your copmanyshares go up in value from now you get potentially an income tax free bonus (usual rules on most employer share options would charge income tax on this increase).

A key thing to know is that you need to remain in either full or part time employment).

There are a fair few other rules around this scheme that govern the tax treatment but without knowing more about the offer to you its difficult to say much more.

Do you have any more details in your letter (eg when you can execise options, what you need to pay, whether the option price is granted at market value of shares ) etc. Sorry if this is all a bit technical but feel free to ask more specific questions if you like

Thank You Poppy for your reply.
I start the role next week - so will find out more soon - and no doubt will have more questions, if that is OK.

In the meantime, while having a peek at the active conversations thread a saw you are going through a very tough time. I'm so sorry to read about what you are going through - and I send you my love.
Cx

ask away - I'll help if I can chocolate days -good luck with the new role.

and thanks for your kind thoughts x