What is your equity actually worth?
Model the after-tax difference between EMI, CSOP, unapproved options, growth shares and ordinary shares. For you, and for your whole company.
Your personal equity scenario
Choose your scheme type and enter your grant details. We will show you what you keep after tax at exit, and how that compares to EMI. Modelling is based on UK tax rules and assumes a UK-resident employee.
Your option or share grant
Select your scheme and enter your numbers. All figures in GBP.
Number of options held under the scheme.
Set at AMV at grant for full EMI tax efficiency.
AMV when granted. If above the exercise price, the discount is taxed as income at exercise (RCAs).
Number of growth or ordinary shares held.
Typical structures set the hurdle 15 to 25% above current market value to avoid an income tax challenge.
Nominal value paid to subscribe for the growth shares. Usually a token amount (£0.0001 is typical).
What you actually paid per share at acquisition.
UMV when you acquired the shares. If higher than what you paid, the spread is taxed as employment income at the time of acquisition.
Per-share value at the eventual exit.
Used to determine your income tax band. Modelling assumes a UK-resident employee.
Your whole company
Scale the analysis across your full equity scheme. What does the right scheme choice mean for your whole team, and for your balance sheet?
Building on your personal scenario
Your individual figures carry through below. Adjust the team-wide inputs to model the full picture your board needs to see.
Your full equity scheme
Team-wide scheme details. All figures are averages across the scheme.
Modelling assumes UK-resident employees.
Sets the value of the Part 12 CT deduction.
| Scheme | Gross gain | Total tax | Net proceeds | vs CSOP |
|---|---|---|---|---|
| Enter details above | ||||
Corporation tax relief
The Part 12 deduction. The biggest company-side benefit, and the one most boards miss.
Under Part 12 of the Corporation Tax Act 2009, the company gets a statutory corporation tax deduction equal to the gain at exercise (market value minus exercise price) for EMI, CSOP and Unapproved options. This applies even when the employee pays no income tax. EMI is the standout: the company gets the full deduction while the employee is exempt from income tax and NIC. No other UK incentive structure offers this combination.
Employer NIC saving
A direct balance-sheet benefit that is often overlooked.
Under unapproved options, and CSOP exercised outside approved terms, the company pays secondary Class 1 NIC at 15% on the gain at exercise. Under EMI, no employer NIC is due on exercise as long as the exercise price was set at or above AMV at grant. CSOP options exercised on Exit or 3+ years after grant (or under one of the HMRC exemption clauses) also avoid NIC for both the company and the recipient.
Why EMI is the most tax-efficient option scheme
How the maths breaks down. The features below explain why EMI consistently produces the strongest after-tax outcome across the schemes modelled here.
The acronyms that matter
Three valuation and treatment concepts plus one tax relief that drive every figure in this tool. Worth understanding before you finalise a scheme decision.