We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
Reforms support the government’s efforts to support entrepreneurship
The government is expanding the Enterprise Management Incentives (EMI) scheme, allowing more companies to offer tax-advantaged share options to their employees. The changes, effective from 6 April 2026, aim to help growing businesses attract, retain and reward top talent.
For eligible companies, the limits for EMI options granted on or after 6 April 2026 will increase significantly:
- company option limit: from current £3m to £6m
- gross assets: from current £30m to £120m
- number of employees: from current 250 to 500
- exercise period: from current 10 years to 15 years (can also apply retrospectively to existing unexercised contracts).
These changes allow both start-ups and scale-ups to participate in EMI schemes, aligning employee and employer interests in driving company growth.
The measure supports companies in incentivising and rewarding employees effectively, helping them to attract and retain high-calibre talent. It also encourages long-term employee commitment through the extended exercise period. By enabling larger and growing companies to offer EMI schemes, the government hopes to foster innovation, economic growth and competitiveness in the private sector.
These reforms form part of the government’s wider effort to support entrepreneurship, start-ups and scale-ups. They aim to ensure the UK tax system remains competitive and keeps pace with business innovation.