New EMI thresholds unlock further share incentive opportunities

Steven Butcher shares his initial thoughts on the expanded EMI scheme in this quick read.

From 6 April 2026, eligible companies with gross assets of up to £120M (previously £30M) and less than 500 employees (previously 250) will be able to grant tax advantaged Enterprise Management Incentive  (“EMI”) share options to their qualifying employees.

Share incentives can be a powerful non-cash means of recruiting, retaining, and incentivising key employees to drive an organisation’s strategy. Amongst other advantages, EMI share options benefit from growth above grant date market value, free of Income Tax and Class 1 National Insurance, and potential to access lower Capital Gains Tax rates on sales of shares acquired on exercises two or more years after the option arrangement is put in place.

The increases in thresholds should be welcomed by relevant companies and will go some way toward reducing the negative impact of changes in lease accounting requirements on the number of companies that stand to make use of EMI.

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To explore how EMI or other share incentives could benefit your organisation, please contact us.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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