From 6 April 2026, HMRC's Enterprise Management Incentives (EMI) rules loosened significantly: the employee cap rose from 250 to under 500 full-time-equivalent staff, the gross-assets limit jumped from £30m to £120m, and the company-wide value of shares under option doubled from £3m to £6m (the £250,000 per-employee limit is unchanged). The maximum option-exercise window also extended from 10 to 15 years, and this can apply retrospectively to existing unexercised options.
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UK expands EMI share-option scheme: 500 staff, £120m assets, £6m cap from Apr 2026
Why this matters for founders
More growing startups now qualify for EMI, the UK's most tax-efficient way to grant employee share options, so founders should review eligibility and consider (re)issuing EMI options to attract and retain talent under the new caps. Existing option holders can also extend their exercise period to 15 years without losing the tax advantages.
Source: Saffery
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