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.
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.
The 2025 UK Budget announced a series of proposed reforms to EMI, expected to take effect from 6 April 2026. These changes are designed to broaden the scheme’s accessibility and increase its flexibility, making it more attractive to a wider range of relevant businesses.
Our experts unpack the key announcements of the Autumn Budget, explore the implications for businesses and individuals, and answer your questions live.
From 6 April 2026, Incorporation Relief will no longer apply automatically. Why have HMRC made this change and what do you need to know?
Price Bailey reports that taxpayers who settled with HMRC are left at a disadvantage following HMRC's Budget announcement.