Qualifying share schemes are promoted by the government and can be a useful way of companies keeping salary costs under control whilst still encouraging loyalty and rewarding staff. They also allow the current owner to retain full control, as the shares only become the property of the employee on a future date and contingent upon a defined trigger, for example a sale of the company.
There are strict legal requirements for a scheme to qualify and legal advice is essential to ensure that a proposed scheme benefits from the most advantageous tax treatment.
EMIs are tax advantaged share options. They are designed to help small, higher risk companies recruit and retain employees who have the skills to help them grow and succeed. They are also a way of rewarding employees for taking a risk by investing their time and skills to help small companies achieve their potential.