Which is better for a private company, an EMI or a CSOP?

If your company and employees qualify for EMI, it is usually the stronger choice: the individual participant limit is £250,000 rather than £60,000 of share options & there is far more flexibility over the exercise price.

But CSOP should not be discounted. It has far fewer qualifying conditions — no restrictions on types of trade, amount of gross assets or employee numbers — and still delivers valuable tax savings, with no income tax or NICs on grant, or on exercise three years or more after grant.

In short: EMI if you qualify, CSOP as the next best tax-efficient share option plan if you do not.