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. 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.