Tax implications of share option schemes
TL;DR
Overview of UK share option taxation comparing EMI, CSOP, and unapproved scheme treatments.
Accessible overview of UK share option taxation for startup founders and employees. Compares EMI, CSOP, and unapproved schemes and their respective tax treatments.
Key Findings from SeedLegals (2025)
- EMI options offer most favorable tax treatment for qualifying companies
- Unapproved options taxed as employment income at exercise
- CGT applies on later sale if shares held
- Tax treatment varies significantly by scheme type