Comparison · Business & Employment · 2026/27
Growth Shares vs EMI Options UK 2026/27
Growth shares give employees value only above a set hurdle, useful when a company cannot use EMI. EMI options are the go-to tax-advantaged scheme for qualifying smaller companies, up to GBP 250,000 per individual. This 2026/27 guide compares eligibility and tax treatment.
Key facts -- 2026/27
- • EMI individual limit: GBP 250,000 (option value at grant)
- • EMI company limit: GBP 3 million unexercised total
- • EMI qualifying gross assets: under GBP 30 million
- • EMI qualifying employees: fewer than 250 FTE
- • Growth shares: no formal individual/company cap, structured via hurdle
- • BADR rate (2026/27): 18%
Structure and Eligibility
EMI is a formal, HMRC-recognised option scheme with strict eligibility criteria for both the company and the shares involved, but offers well-understood, favourable tax treatment as a result -- it is the default choice for qualifying UK startups and scale-ups.
Growth shares are a more flexible, custom-structured solution -- a separate share class engineered with a hurdle to minimise upfront value (and therefore tax) -- useful precisely because there is no EMI-style eligibility gate, though they require more bespoke legal and valuation work to set up correctly.
Worked Example: Two Different Situations
| Situation | Typical scheme used |
|---|---|
| UK startup, under 250 employees, qualifying trade | EMI options |
| Larger company or excluded sector, non-employee consultant | Growth shares |
Illustrative only -- consult a tax adviser for scheme-specific eligibility. Use the capital gains tax calculator to estimate CGT on a future disposal.
Side-by-Side Comparison
| Factor | Growth shares | EMI options |
|---|---|---|
| Eligibility gate | None (flexible) | Strict company/employee criteria |
| Upfront cost to recipient | Low (hurdle-set value) | None until exercise |
| Individual limit | None formal | GBP 250,000 |
| Setup complexity | Bespoke, more legal work | Standardised HMRC scheme |
| Best for | Non-qualifying companies | Qualifying startups/scale-ups |