The government is significantly increasing the company eligibility limits for the enterprise management incentives scheme (EMI) to allow scale-ups to join start-ups in offering tax-advantaged shares to the talent they need to grow.

From 6 April 2026, the limits will be increased from 250 to 500 employees, the gross assets threshold from £30m to £120m, and the company option cap from £3m to £6m, with the maximum holding period extended from 10 years to 15 years.

The changes will affect employees benefiting from EMI share options through income tax and national insurance reliefs; those claiming capital gains tax relief, following disposal of new EMI shares under qualifying conditions; and employers claiming relief from corporation tax and employer national insurance.