SIP vs EMI vs CSOP vs SAYE: UK Share Schemes Compared
Updated October 2026 · 2026/27 UK tax year
The UK has four tax-advantaged employee share schemes approved by HMRC. Two are open to all employees (SIP and SAYE) and two can be offered to selected staff (EMI and CSOP). Each trades flexibility against tax relief differently, which is why many companies run more than one.
At a glance
| SIP | EMI | CSOP | SAYE | |
|---|---|---|---|---|
| Gives employees | Shares | Options | Options | Options linked to savings |
| Who can take part | All employees (same terms) | Selected employees | Selected employees | All employees (same terms) |
| Company eligibility | Any company | Independent, under 250 employees, gross assets up to £30m | Any company | Any company |
| Limit per employee | £1,800 partnership + £3,600 free + matching up to 2:1 per year | £250,000 of options | £60,000 of options | Up to £500 a month savings |
| Tax on grant | None | None | None | None |
| Tax on exercise/withdrawal | None after 5 years | None if exercise price at least market value at grant | None if exercised 3-10 years after grant | None if exercised 3 or 5 years after grant |
| On sale | No CGT while in plan | CGT; BADR 18% available | CGT | CGT |
Share Incentive Plan (SIP)
Best for broad-based ownership. Employees get shares in trust and, after five years, can take them out free of income tax and National Insurance. Use our UK SIP tax calculator to model the benefit. The plan cannot be selective: all eligible staff must be offered the same terms, although a qualifying period of up to 18 months can be set.
Enterprise Management Incentive (EMI)
Best for growth companies that want to reward key staff with significant upside. It offers the most generous tax treatment, with options that can be granted at market value and taxed only as capital gains. Try the EMI options calculator for a worked estimate.
Company Share Option Plan (CSOP)
A discretionary plan for any company, including those too large for EMI. The £60,000 cap limits its usefulness for senior hires, and options generally need to be held for at least three years to keep the tax advantage.
Save As You Earn (SAYE)
Employees save from net pay for three or five years, then use the savings (plus any bonus) to buy shares at a price fixed at the start, which can be up to 20% below market value. If the share price falls, the employee can take the savings back, so there is no downside risk to the money saved. SAYE is popular at listed companies because it gets high participation.
How to choose
- Small, fast-growing company that wants to reward key staff: EMI first, because the limits are high and the tax treatment is best.
- Company outside EMI limits wanting a discretionary scheme: CSOP, possibly alongside a Long-Term Incentive Plan (LTIP) for executives.
- Company wanting every employee to be an owner: SIP, SAYE or both.
- Employee comparing offers: look at the maximum realistic gain, not the tax rate alone. A £250,000 EMI grant that creates a large capital gain beats a £5,400-a-year SIP even though both are tax-efficient.
Employers can set a plan up on their own, but most use a share scheme adviser or administrator because HMRC registration and annual returns (due by 6 July after each tax year) are mandatory for all four schemes.
Frequently asked questions
Can a company run more than one share scheme?
Yes. Many companies combine EMI for senior staff with a SIP or SAYE for all employees. The schemes have separate limits that do not reduce each other.
Which UK share scheme has the best tax treatment?
EMI generally offers the largest potential tax saving per employee because of its £250,000 limit and the possibility of 18% CGT with Business Asset Disposal Relief. For broad-based plans a SIP removes income tax and NI entirely after five years.
Do I have to report share schemes to HMRC?
Employers must register the scheme and file an annual return by 6 July following the end of each tax year. Employees usually only need to report if there is a taxable event not handled through PAYE.