2026 brings important changes to EMI and EIS – here’s what you need to know

This year marks a significant shift for UK growth businesses and investors. From April 2026, reforms to the Enterprise Management Incentive (EMI) and Enterprise Investment Scheme (EIS) will come into effect, creating new opportunities to attract talent and raise capital.

These changes, announced in the 2025 Autumn Statement, are designed to make it easier for ambitious companies to scale and for investors to back innovation.

What’s changing for EMI?

• Employee limit increases from 250 to 500, enabling more of your team members to participate.
• Gross asset threshold rises from £30m to £120m, allowing larger businesses to qualify.
• Share option cap doubles to £6m, making bigger awards possible.
• Maximum holding period for options extends from 10 to 15 years, offering greater flexibility.
• Admin simplified – the EMI notification requirement to HMRC will be removed from April 2027.

What’s changing for EIS?

• Annual investment limit doubles to £10 million, or £20 million for Knowledge-Intensive Companies (KICs).
• Lifetime cap rises to £24 million (or £40 million for KICs).
• Gross assets threshold increases to £30 million pre-investment and £35 million post-investment.

Why does this matter?

• For founders: Greater scope to incentivise your team and attract top talent.
• For investors: Increased capacity to support innovative businesses while benefiting from EIS tax reliefs.

Now is the time to plan. Review your equity schemes and fundraising strategies ahead of April 2026.

How we can help

At Cripps, we’ve advised many founders and investors on structuring EMI and EIS arrangements to maximise value and ensure compliance. If you would like tailored guidance on how these changes could impact your business or investment plans, please get in touch.