The 2025 UK Budget has announced significant reforms to the Enterprise Management Incentive (EMI) regime, changes that will benefit more high-growth companies and offer employers greater flexibility in retaining and rewarding key people.
For advisers, this represents an important planning opportunity. The updates broaden EMI eligibility, extend option lifespan, and may allow clients previously excluded from the scheme to access generous tax advantages for the first time.
Key Budget Changes to the EMI Regime
EMI options remain one of the UK’s most favourable share incentive structures, offering income tax and NIC exemptions on exercise (subject to conditions) and potential CGT advantages. From 6 April 2026, the following enhancements will apply:
| Current rules | New rules (April 2026) |
| Gross assets max £30m | Threshold increases to £120m |
| Up to 250 FTE employees | Increased to 500 employees |
| EMI option pool capped at £3m | Increased to £6m |
| Options must be exercised within 10 years | Lifespan increased to 15 years |
What This Means for Your Clients
These reforms will materially expand the range of companies that can participate in EMI:
- High-growth businesses will remain eligible for longer as they scale
- Companies previously above the size limits may now qualify for EMI
- Clients anticipating investment or a future exit gain greater planning certainty
- Longer option lifespan benefits exit-only and long-horizon incentive schemes
The new 15-year duration is particularly helpful for businesses where liquidity events are unpredictable. It reduces the risk of options expiring prematurely and lessens the administrative burden of renegotiating schemes.
Importantly, existing EMI options can be amended to adopt the longer lifespan without losing tax-advantaged status—an immediate advisory opportunity ahead of 2026.
How to Support Your Clients Now
These updates create a valuable window for advisers to:
- Reassess EMI eligibility for scaling clients
- Review existing incentive structures in light of the new thresholds
- Identify opportunities for companies previously excluded from EMI
- Prepare clients with exit-based schemes for the extended 15-year horizon
- Consider whether existing EMI grants should be updated
For many businesses, EMI may now offer significantly greater strategic, commercial, and tax value.
How Corridor Supports You
Corridor works alongside professional advisers to provide specialist share plan, tax, and reward expertise for clients navigating changing UK rules.
We can help you:
- Assess EMI eligibility under the new thresholds
- Review, redesign, or implement EMI schemes
- Support tax analysis and technical compliance
- Prepare clients for the April 2026 changes
- Advise on alternative share-based incentives where relevant
If your clients are scaling, planning for investment, or exploring employee ownership, now is the ideal time to revisit their share incentives.
