EMI and unapproved options vs growth shares calculator

How do net returns from different share schemes compare?
Learn more about how to use the calculator before you get started.

The calculations below are based on .

  • No other shares have been issued
  • Current shareholders have paid nothing for their shares (and will be subject to CGT at 20% on sale)
  • EMI options are exercised at current share price, only on exit (and will be subject to Entrepreneurs' Relief CGT at 10%)
  • Unapproved options are exercised at current share price, only on exit (and will be subject to Income Tax at 40%)
  • Proceeds from EMI and unapproved options exercised are added to exit valuation
  • Growth shares are issued at a hurdle above current share price (and will be subject to CGT at 20% on sale)
1

Business valuation

Current valuation
Assumed exit valuation
Current valuation
£
Assumed exit valuation
£
 
2

Current shares

Total shares issued
Current share price
Hope premium
Hurdle price
Total shares issued
Current share price –
Hope premium
%
Hurdle price –
 
3

Current shareholders

Name
Ownership
Number of shares
Name
Ownership
%
Number of shares –
Remove
Name
Ownership
%
Number of shares –
Remove
Name
Ownership
%
Number of shares –
Remove
Add shareholder
Total ownership –
Total number of shares –
4

Future shareholders

Name
Ownership
Number of shares
Name
Ownership
%
Number of shares –
Remove
Name
Ownership
%
Number of shares –
Remove
Name
Ownership
%
Number of shares –
Remove
Add shareholder
Total ownership –
Total number of shares –
5

Out-turn on exit

Name
EMI options
Unapproved options
Growth shares
Name –
Net benefit for EMI options –
Net benefit for unapproved options –
Net benefit for growth shares –
Name –
Net benefit for EMI options –
Net benefit for unapproved options –
Net benefit for growth shares –
Name –
Net benefit for EMI options –
Net benefit for unapproved options –
Net benefit for growth shares –
Name –
Net benefit for EMI options –
Net benefit for unapproved options –
Net benefit for growth shares –
Name –
Net benefit for EMI options –
Net benefit for unapproved options –
Net benefit for growth shares –
Total net benefit for EMI options –
Total net benefit for unapproved options –
Total net benefit for growth shares –

Get the complete guide to setting up a company share scheme

A plain English guide to help business owners understand the ins and outs of share schemes.

It’s free, and it takes just 10 minutes to read.

The guide is specifically aimed at UK SMEs and will outline the following:

  • The three ways most UK SMEs distribute equity
  • How to be tax efficient
  • The difference between shares and options
  • How to protect the business
  • The key HMRC terms and conditions
  • Common pitfalls to avoid

We’re on hand to answer any questions that you have afterwards (for free).

Contact us anytime via hello@vestd.com.

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