Budget 2025: The Expanded EMI Scheme Is a Genuine Game-Changer

Budget 2025: The Expanded EMI Scheme Is a Genuine Game-Changer

The very tax-efficient Enterprise Management Incentive (“EMI”) scheme has been expanded to allow larger and more valuable companies to participate in the most tax-efficient method of incentivising employees with share options. The changes announced by the Autumn Budget 2025, coming into effect from 6 April 2026, expand the scope of EMIs to companies that would previously not qualify.

Is EMI now something your company should be looking at?

If you were previously shut out of EMI because you didn’t fit the eligibility criteria, it’s definitely worth revisiting. From April 2026, the thresholds expand significantly:

• Gross Assets Test: Increasing from £30m to £120m.
• Employee Headcount: Doubling from 250 to 500 employees.
• Company-wide Option Limit: Rising from £3m to £6m in unexercised options.
• Maximum Option Lifespan: Extended from 10 to 15 years—and this can apply retrospectively to existing EMI options.

Why this matters for growing businesses

These changes are a huge win for scale-ups, later-stage venture-backed companies, and capital-intensive businesses that have outgrown EMI but still want the benefits:

• Reward your team with a meaningful stake in the company without any upfront cash cost.
• Attract top talent with a compensation package that stands out.
• Retain key people by aligning their long-term interests with the company’s growth.

How we can support you

With the door now open to many more companies, or to companies with existing EMI schemes expanding them, the challenge is to ensure your scheme is set up correctly and delivers the best results for both the business and your employees. That’s where specialist advice really matters.

More information on how we can help you is available here.