The Enterprise Management Incentive (EMI) scheme is a government-backed, tax-efficient share option arrangement designed to support growing smaller companies in attracting, incentivising and retaining key talent. It has been established for a quarter of a century, enabling employees to acquire shares at a pre-agreed price in the future, aligning their interests with business performance while benefiting from potential growth in value.

The Chancellor’s decision in the recent Budget to expand eligibility for Enterprise Management Incentive (EMI) share option schemes is therefore a welcome move to help level the playing field by allowing significantly more UK companies to offer employee share options as part of their remuneration packages.

EMI schemes are HMRC approved share option schemes that allow employees to buy shares in their employer in the future but at today’s value, enabling them to benefit from company growth in a tax-efficient way. However, both the company and the employee must satisfy certain conditions for the option to qualify for the EMI scheme and the associated tax benefits.

From April 2026, the key changes are as follows:-

• Employee Limit – the maximum employee limit for EMI eligibility will double, increasing from 250 to 500 employees
• Gross Assets Limit - the gross assets cap for EMI eligibility will quadruple from £30m to £120m
• Company Option Limit - The total value of options companies can grant will double from £3m to £6m
• Option Exercise Period – Extended from 10 years to 15 years

These changes mean EMI will no longer be limited to early-stage startups; many growing and scaling companies that were previously too large to qualify will now be eligible. The extended exercise period accommodates longer periods before a company sale.

Equity offers something salary cannot, a share in long-term value. Evidence shows employee ownership is linked to higher engagement, productivity and retention—an important consideration as UK productivity continues to lag. Unlike bonuses or pay rises, share schemes encourage long-term commitment and align employee and business success without driving up base pay.

The expansion of EM eligibility is therefore a strategic opportunity for business owners. In an environment of constrained reward options and rising pay costs, offering employees a genuine stake in the success of the business may be one of the most effective tools available for attraction, engagement and retention.

How GS Verde Can Help

A business owner will need corporate finance, tax and legal advice to implement an EMI share option scheme. At the GS Verde Group, we can help with all aspects, with multiple disciplines under one roof working together to help businesses achieve their business goals.

If you’re interested in implementing an EMI share option scheme or would like further information, get in touch with a member of our team.