What is a Share Option Scheme and Should Your Startup Have One? (2026)
Share options give employees the right to buy shares at a fixed price (exercise price) at a future date — creating a powerful incentive without issuing shares immediately.
Share options give employees the right to buy shares at a fixed price (exercise price) at a future date — creating a powerful incentive without issuing shares immediately. EMI (Enterprise Management Incentive) options are the UK's tax-advantaged version: up to £250,000 per employee, CGT at 10% on gains if properly structured. Unapproved options are taxed as income (less efficient but more flexible). This article covers setup costs, documentation, and common structures.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.