Fill in the figures, then click Work out my tax.
Result
The sale
| Line | Amount |
|---|
If the sale price were different
| Sale price | Tax | You keep |
|---|
What to do
| Step | What it means |
|---|
What it does, and what it leaves to you
- Covers: income tax on the discount between grant value and exercise price, Capital Gains Tax at 18% and 24% with the basic-rate band, the annual exempt amount, Business Asset Disposal Relief at 14% (2025/26) or 18% (2026/27) with the 24-month rule and the £1m lifetime limit, and an unapproved-option comparison.
- Gives: tax by type, the cash you keep after paying the exercise price, the effect of missing the two-year mark, and a table of outcomes at other sale prices.
- Not decided: whether your option qualifies as EMI, the company's eligibility, Scottish income tax rates, National Insurance, exercise and sale in different tax years, disqualifying events, share-for-share exchanges, earn-outs and anything that changed after this was written.
Common questions
What is an EMI option?
A tax-advantaged UK share option for employees of qualifying small companies. If the exercise price is at least the market value at grant, there is no income tax or National Insurance when you exercise, and the gain is taxed as capital gain when you sell.
What is Business Asset Disposal Relief on EMI shares?
A reduced Capital Gains Tax rate on the first £1m of lifetime gains: 14% for 2025/26 and 18% from 6 April 2026, against 18% or 24% normally. For EMI shares the two-year holding period runs from the date the option was granted, not exercised.
When is income tax due on EMI options?
Only if the exercise price is below the market value at grant. That difference (the discount) is taxed as employment income when you exercise. Agreeing a valuation with HMRC before granting avoids it.
What if I exercise after leaving or after a sale?
You usually have 90 days after a disqualifying event, such as the company being taken over or you leaving, to exercise and keep the tax advantage. After that the gain is taxed as income.
How does an EMI option compare with an unapproved option?
An unapproved option taxes the whole gain at exercise as income, at up to 45%, and may attract National Insurance. The calculator shows the income tax difference on your numbers.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.