EMI and unapproved options vs growth shares calculator

How do net returns from different share schemes compare?

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
Name
Ownership
%
Number of shares
Name
Ownership
%
Number of shares
4

Future shareholders

Name
Ownership
Number of shares
Name
Ownership
%
Number of shares
Name
Ownership
%
Number of shares
Name
Ownership
%
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