From 6 April 2026, the EMI Schemes (Enterprise Management Incentive) rules will change in a way that significantly broadens who can use them. For many growing and scaling businesses, this is not just a technical update but a genuine opportunity to revisit how key people, in a business, are rewarded and retained.
EMI schemes have traditionally been associated with early-stage start-ups. In practice, that assumption has led many later-stage businesses to discount the scheme altogether. The changes coming into force challenge that thinking and bring EMI firmly into scope for a much wider range of companies.
Put simply, an EMI scheme allows a company to grant share options to employees, giving them the right to buy shares in the future at a fixed price.
Options are typically linked to performance, length of service, or a future sale of the business. For employees, this creates a real opportunity to share in the value they help build, supported by favourable tax treatment. For employers, EMI offers a cost-effective alternative to cash incentives, while also delivering corporation tax relief on the cost of the options.
The difficulty we often see is not whether EMI is suitable, but when it is considered. Too often, it only comes onto the agenda once retention becomes a concern or an exit is already being discussed. By that point, flexibility is reduced and opportunities can be missed. When these conversations happen earlier, the scheme can be shaped to:
- support growth
- align expectations
- mitigate unintended tax consequences later on
The Autumn Budget in 2025 introduced a number of enhancements designed to support high-growth businesses. The key changes are set out below:
What’s changing from 6 April 2026?
| Rule | Current | From 6 April 2026 |
|---|---|---|
| Company-wide EMI option limit | £3m | £6m |
| Gross assets limit | £30m | £120m |
| Employee headcount limit | 250 | 500 |
| Option exercise period | 10 years | 15 years |
| Individual employee limit | £250k | Unchanged |
Taken together, these changes significantly broaden access to EMI. Companies with up to £120m in gross assets and 500 employees can now qualify, bringing the scheme into reach for many later-stage growth businesses and scale-ups.
The extension of the option exercise period to 15 years is particularly important. The extension allows businesses to reward sustained contribution over a longer period and align incentives with longer growth or exit timelines. Existing EMI options can also be updated to adopt the new exercise period without losing their tax-advantaged status.
There is also a welcome reduction in administration too. From April 2027, companies will no longer be required to notify HMRC when EMI options are granted, removing a layer of compliance that has historically discouraged some businesses.
We regularly support clients through the full EMI process from assessing eligibility and designing option structures, through to valuations, HMRC interaction and clear employee communications. In our experience, the most effective schemes are those designed with a clear commercial purpose rather than introduced reactively.
A good example of this is our work with Ilosta Technology, where an EMI scheme was used to support growth and retention in a way that aligned with the company’s longer-term plans. Read our Ilosta EMI Scheme case study to explore how this scheme works in practice.
These changes mean EMI should now be on the radar for a much wider range of businesses, particularly those approaching or exceeding £30m in assets, scale-ups with increasing headcount or senior hires, founders planning for long-term retention or an eventual exit, and businesses seeking tax-efficient incentives without immediate cash cost.
As with many areas of tax planning, the value lies in thinking ahead. The 2026 changes provide a timely opportunity to step back and consider whether your current incentive structures still support where the business is heading and whether EMI could play a role in the next phase of growth.
Find out more key personal and business financial dates for your 2026 diary here: Key UK Financial Dates to Be Aware of in 2026 : ammu