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EMI and CSOP Share Option Calculator
The capital gains tax on exercising qualifying options and selling the shares, at 2026/27 rates
EMI and CSOP Share Option Calculator 2026/27
What will you keep from qualifying EMI or CSOP options?
Qualifying options exercised at the agreed price usually carry no income tax or National Insurance. The gain is taxed as a capital gain when you sell. Enter your figures to see the tax and what is left.
Based on tax rates and allowances in England, 2026/27
It decides how much of your basic rate band is left, and so how much of the gain is taxed at 18% rather than 24%.
We assume you are the higher earner in your household. A capital gain is not income for the Child Benefit charge, so the gain does not change it.
What the numbers say
Enter your salary, the number of options, the market price and the exercise price to see the capital gains tax and what you keep.
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Where the gain goes
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Illustrative only, not financial advice. Based on tax rates and allowances in England for 2026/27. Assumes qualifying CSOP or EMI options, granted at no less than market value. The shares are sold straight away at the market price entered. After the £3,000 annual exempt amount, capital gains tax is 18% within your remaining basic rate band and 24% above. It assumes no other gains or losses this tax year. Business Asset Disposal Relief is not applied. For EMI shares it generally needs two years from the date the option was granted to the date of sale. You must be an employee or officer throughout. A capital gain does not count as income for the High Income Child Benefit Charge. Scottish income tax bands differ, but capital gains tax rates are UK wide. The results depend entirely on what you enter and your circumstances may differ. Talk your figures through with us, the first conversation is free.
Why qualifying options are taxed more kindly
EMI and CSOP are tax-advantaged option schemes. If the options qualify and you exercise at the agreed price, there is usually no income tax or National Insurance on exercise. Instead the gain is taxed as a capital gain when you sell the shares.
This calculator assumes you exercise and sell straight away at the market price you enter. The gain is the sale value less what you pay to exercise. After the £3,000 annual exempt amount, it is taxed at 18% within your remaining basic rate band and 24% above.
EMI shares may also qualify for Business Asset Disposal Relief at 18% on the whole gain. That generally needs two years from the date the option was granted to the date you sell, not from the date you exercise. A capital gain does not count as income for the Child Benefit charge, so it does not change that either.
If your options are unapproved, or over a listed company, use the share option tax calculator. For RSUs use the RSU tax calculator and for a cash bonus the bonus tax calculator. If you keep the shares and sell later, the capital gains tax calculator covers the sale. The salary sacrifice calculator shows what a pension sacrifice could save.
Frazer James is an independent, FCA-regulated firm of Certified Financial Planners. Advice covers the whole of the market, there is no initial fee, and the first meeting is free.
No income tax on exercise
Qualifying EMI and CSOP options exercised at the agreed price usually carry no income tax or National Insurance. The gain is taxed only when you sell.
Capital gains rates instead
The gain is taxed at 18% within your basic rate band and 24% above, after the £3,000 exemption. That is far less than 42% or 47% on earnings.
Two years from grant
For Business Asset Disposal Relief on EMI shares, the two years generally run from the date the option was granted to the date of sale.
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Questions people ask about EMI and CSOP options
Do I pay income tax on EMI or CSOP options?
Usually not, if the options qualify and you exercise at the agreed price, which must be at least market value when granted. There is no income tax or National Insurance on exercise. The gain is taxed as a capital gain when you sell. If the exercise price was below market value at grant, some income tax may be due.
How is the gain on qualifying options taxed?
As a capital gain when you sell the shares. The gain is what you sell for less what you paid to exercise. After the £3,000 annual exempt amount, it is taxed at 18% within your remaining basic rate band and 24% above. This calculator assumes you sell straight away after exercising.
When does Business Asset Disposal Relief apply to EMI shares?
EMI shares can qualify for the relief, which taxes the gain at 18%. The two-year qualifying period generally runs from the date the option was granted to the date the shares are sold, not from exercise. You must be an employee or officer of the company throughout. The calculator does not apply it.
Does selling EMI shares affect my Child Benefit?
No. The High Income Child Benefit Charge is based on adjusted net income, and a capital gain is not income for that purpose. The gain on qualifying options sold does not change the charge. A salary or bonus that already takes you over £60,000 still does, so the calculator shows your charge on salary alone.
Is CSOP treated the same as EMI?
For income tax, broadly yes. Qualifying CSOP options exercised between three and ten years after grant usually carry no income tax. The gain is taxed as a capital gain on sale. The difference is that CSOP shares do not get the special route to Business Asset Disposal Relief that EMI shares have.
Reviewed by
BSc, MLIBF, PETR, Chartered ALIBF · Co-Founder and Chartered Associate
Chris has spent over a decade in financial planning and specialises in research and technical analysis. He checks every figure and calculation on this page before it is published.
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