Upcoming changes to the Employment Management Incentive scheme will open up access for certain companies to grant share options to employees – bringing benefits for companies and employees alike.

Contributors: Meri Seiranian and Dominic Travers

From 6 April 2026, some larger companies will be eligible to grant options to their employees to buy shares under the Enterprise Management Incentive (EMI) scheme. To enable this, the current thresholds will increase as follows:

  • Gross asset limits will rise from £30 million to £120 million.
  • Employee numbers will increase from 250 to 500.
  • The total value of company options will double from £3 million to £6 million. 

For eligible companies, the maximum exercise period for EMI options will increase from 10 to 15 years, with the extension available retrospectively for existing options. Additional administrative changes, including the removal of EMI grant notifications from April 2027, will also be introduced with the aim of streamlining compliance.

How could the changes impact your business?

The reforms allow many larger or fast-growing companies to qualify for EMI for the first time, expanding access to tax benefits. Existing EMI users will also be able to extend their option life to 15 years without losing their tax benefits – in turn giving their employees more time to exercise their options, sell their shares and realise value. 

Companies will need to review scheme rules, grant policies, and long-term incentive planning to ensure alignment with the higher thresholds. While reporting obligations remain largely unchanged until 2027, affected companies must also continue to meet the Employment Related Securities deadlines to avoid penalties.

What steps should you take?

In light of the changes, you should assess your eligibility under the new thresholds before 6 April 2026, consider implementing or reinstating EMI schemes if you qualify, and review and amend existing EMI plans to extend the exercise period if required.

Key takeaways

  • Review your current EMI eligibility.
  • Amend your existing EMI options where appropriate. 
  • Update your plan rules ahead of administrative changes.
  • Reassess your incentive strategy if you have previously been excluded.