Enterprise Management Incentives – wider access from April 2026

Enterprise Management Incentives (EMI) schemes are one of the most tax-efficient ways for businesses to attract, retain and motivate key employees. They allow companies to offer share options to employees in a way that can be highly tax-efficient for both the business and the individuals involved.

From 6 April 2026, the eligibility criteria for EMI schemes will expand significantly, meaning many more businesses could benefit.

The key changes include:

Larger companies will qualify – the gross assets limit will increase from £30 million to £120 million.
More employees allowed – the employee limit will increase from 250 to 500.
Greater value of options – the total value of shares that can be placed under EMI options will double from £3 million to £6 million per company.
Longer exercise period – employees will have up to 15 years to exercise options, rather than the current 10 years.

These changes could make EMI a practical incentive option for a much wider range of growing businesses.

Most trading companies can qualify within these limits, although some sectors are excluded. Where EMI is not suitable, there are alternative structures that can still allow employees to participate in the future growth of the business.

Employee share incentives can be particularly effective where businesses want to:

reduce the cash cost of hiring senior staff,
provide tax-efficient long-term rewards, or
align key employees with the future growth of the company.

At Kirk Newsholme, we have extensive experience of implementing EMI schemes and other employee equity participation arrangements.

If you would like to explore whether tax-efficient employee participation could work for your business, please contact myself – jim.meakin@kirknewsholme.co.uk or Clare Thomas – clare.thomas@kikrnewsholme.co.uk and we would be happy to discuss this with you.