Tax implications of share option schemes
TL;DR
Overview of UK share option taxation comparing EMI, CSOP, and unapproved scheme treatments.
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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