For EMI options granted on or after 6 April 2026, the qualifying company gross assets limit rises from GBP 30m to GBP 120m and the employee cap from 250 to 500 full-time equivalents. The maximum value of unexercised company options doubles from GBP 3m to GBP 6m, and the option exercise window extends from 10 to 15 years (applying to existing contracts too). HMRC guidance was published ahead of the change.
Why this matters for founders
Scale-ups previously locked out of EMI by the old GBP 30m asset or 250-employee ceilings can now grant tax-advantaged options, so founders should review or set up an EMI scheme to hire and retain staff more cheaply. Existing EMI contracts can also be amended to the 15-year exercise period without losing the tax advantages.
Source: GOV.UK (HM Treasury / HMRC)
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