EMI Option Regime: Autumn Budget Changes

Among other changes announced as part of the UK Autumn Budget 2025, Rachel Reeves, the Chancellor of the Exchequer, announced that some of the limits that restrict the availability of the Enterprise Management Incentive ("EMI") share option regime will be relaxed from 6 April 2026:

1. the cap on the aggregate value of shares under option (measured at grant across all option holders) will double to £6 million;
2. the cap on the gross assets of the company will quadruple to £120 million;
3. the cap on the number of employees will double to 500; and
4. the maximum period between grant and exercise of the EMI option will extend from 10 to 15 years (this change will have retrospective effect, allowing the amendment of existing EMI options to provide for the longer exercise period without jeopardising the tax advantages).