Entity Setup
Maximising Start-Ups: Expanded EMI & Entrepreneurship Reliefs from April 2026
Learn how the broadened **Enterprise Management Incentives** and new entrepreneur reliefs affect founders, early employees, and investors, with tips to structure equity rewards optimally under the updated UK regime.
By NomadicTax Research Team • 5-8 min read • April 24, 2026
## What’s new under the entrepreneurship relief package (from 6 April 2026)
As of the start of the 2026-27 tax year, the UK government has rolled out a significant **entrepreneurship tax relief package** aimed at encouraging investment in start-ups, scale-ups and innovation-led businesses. These include the following changes:
- **Expanded eligibility for EMI (Enterprise Management Incentives)**:
• Max value of options increased from £3 million to £6 million. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
• Gross asset ceiling raised from £30 million to £120 million. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
• Employee headcount threshold raised from fewer than 250 to fewer than 500. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
• Maximum holding period extended from 10 years to 15 years. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- **Other reliefs also enhanced**:
• The UK Listings Relief and Venture Capital Trusts are part of new support measures. ([gov.uk](https://www.gov.uk/government/news/britains-innovators-backed-with-around-100m-of-new-investment?utm_source=openai))
• £100 million of new investment triggered under this package aimed at unlocking private capital. ([gov.uk](https://www.gov.uk/government/news/britains-innovators-backed-with-around-100m-of-new-investment?utm_source=openai))
## Why these changes matter
These reforms give far more flexibility to start-ups, founders, and investors:
- **Larger firms can now qualify** for EMI, offering tax advantages when issuing share options.
- Founders/employees can expect **longer time horizons** (up to 15 years) to vest/share without triggering unwanted tax liabilities.
- Investors and equity-holders benefit from more tax-efficient exit potential via improved reliefs.
EXAMPLE: A tech start-up with gross assets of £100m and 300 employees can now grant EMI options (formerly excluded). Employees can hold them for 15 years and enjoy capital gains treatment rather than income tax (under qualifying conditions).
## Practical steps for founders, employees, and advisers
- **Founders**: ensure your company qualifies under the updated limits. If you’re close to a threshold (asset value, employee count), now is the time to assess and plan.
- **Employees**: if offered options, check grant date (from 6 April 2026 onwards), exercise price, and whether the holding period suffices to benefit fully from the reliefs.
- **Advisers**: review existing option agreements and whether they can be amended to reflect new limits, particularly lengthening exercise windows.
- **Legal/tax compliance**: verify scheme registration, employee eligibility, and fulfill reporting obligations (grant notifications, etc.).
## Risks & considerations
- Exceeding thresholds (asset value or employee count) can disqualify EMI treatment.
- Extended holding periods add duration risk (e.g. company performance, valuation, exit timing).
- Changes must be documented carefully—option grants, amendments must comply with updated legislation.
- Liquidity and exit event timing matters: capital gains relief benefit depends on achieving a taxable event under qualifying rules.
## Bottom line
If you're involved in a UK start-up—founder, early employee, investor—these changes offer a golden window. Now is the time to **review your equity structures**, plan option grants, and ensure you hit the new thresholds. With planning, this can enhance rewards and reduce tax drag when exits come.