The Autumn Budget introduced significant enhancements to the EMI scheme, effective from 6 April 2026. These changes aim to make EMI more attractive for later-stage growth businesses while retaining its tax-advantaged status.

EMI schemes offer employees the chance to acquire company shares at a fixed price with significant tax advantages. The employee is given an option to acquire shares at a future point (now within 15 years) based on factors such as a sale or loyalty.

For employers, EMI is a cost-effective way to attract, motivate, and retain key talent without immediate cash outlay, while benefiting from corporation tax relief on the cost of options.

Key Changes

Current Rules	From 6 April 2026
Company-wide EMI option limit: £3m	£6m
Gross assets threshold: £30m	£120m
Employee headcount limit: 250	500
Option exercise period: 10 years	15 years
Individual limit: £250k	Unchanged

Further information

• Companies with up to £120m in assets and 500 employees can now qualify, opening EMI to later-stage businesses.
• Options can now be granted for longer, allowing companies to incentivise employees for up to 15 years before they acquire shares.
• Existing options can also be updated to adopt the 15-year exercise period without losing tax benefits.
• From April 2027, grant notifications to HMRC will no longer be required, reducing compliance burden.

Next Steps

We at bk plus have helped many businesses set up EMI and other types of employee share schemes. If you have key staff you would like to incentivise, get in touch with our expert tax team for a discussion.