EMI schemes ― qualifying conditions for companies

Copyright © 2026 LexisNexis
Produced by Tolley in association with Oliver John
Employment Tax
Guidance
tag-icon Autumn Budget 2025

EMI schemes ― qualifying conditions for companies

Copyright © 2026 LexisNexis
Produced by Tolley in association with Oliver John
Employment Tax
Guidance
tag-icon Autumn Budget 2025
imgtext

Introduction

In order to qualify for the tax breaks that enterprise management incentives (EMI) bring, companies have to meet a number of requirements.

The legislation for qualifying companies is covered in ITEPA 2003, Sch 5, paras 8–23.

For more on the reasons for using EMI schemes, see the Why use an enterprise management incentive (EMI) scheme? guidance note.

The requirements broadly fall into three categories:

  1. •

    the size of the company / group and its structure

  2. •

    the terms of the option

  3. •

    the nature of the company / group trade

HMRC guidance on qualifying companies is at ETASSUM52010 onwards.

A number of changes to EMI limits were introduced in FA 2026. For EMI options granted on or after 6 April 2026:

  1. •

    the company options limit is £6 million (£3 million before 6 April 2026)

  2. •

    the gross assets limit is increased to £120 million (£30 million before 6 April 2026)

  3. •

    the maximum number of employees is increased to 500 (250 employees before 6 April 2026)

  4. •

    the exercise period is

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Oliver John
Oliver John linkedinicon

Director at Azets , Employment Tax

Oliver John was previously at Mazars for just more than five years where he provided tax and share valuation advice to a range of businesses with regards to share transactions. In his role as director at Azets, Oliver will continue to share tax advice with clients over the life of a business, from companies looking to raise capital to shareholders looking to exit.

Read moreRead more
Powered by Tolley+™
  • 22 Apr 2026 12:00

Home/ Tolley Tax Guidance/ Employment Tax / Providing share awards to employees

Popular Articles

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more Read more
tag-icon Year-end tax planning
Corporation Tax

Real estate investment trusts (REITs)

Real estate investment trusts (REITs)Introduction to REITsA real estate investment trust (REIT) is in fact not a trust at all, it is a company which qualifies for special tax treatment under CTA 2010, Part 12. REITs are similar in many ways to collective fund vehicles (such as unit trusts) in that

14 Jul 2020 13:04 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more
Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more