What changed for EMI in April 2026?

The company limits roughly doubled: gross assets up to £120 million, up to 500 employees, and up to £6 million of unexercised options in total. The maximum exercise period rose to 15 years. The £250,000 limit per employee is unchanged.

When must EMI options be notified to HMRC?

For options granted on or after 6 April 2024, by 6 July after the end of the tax year in which they were granted. Missing the deadline means the options lose EMI tax advantages. The government plans to remove the separate notification from April 2027.

How much can my startup raise under SEIS?

Up to £250,000 in total, provided the company has gross assets of no more than £350,000, fewer than 25 full-time equivalent employees and has been trading for less than three years.

What are the EIS limits from April 2026?

£10 million a year (£20 million for knowledge-intensive companies), with lifetime limits of £24 million (£40 million for knowledge-intensive companies), for shares issued on or after 6 April 2026.

EMI, SEIS & EIS Explained for Startups (2026 Rules)

EMI share options

Enterprise Management Incentives let a qualifying company grant employees options over shares, with little or no income tax on exercise if the rules are met, and potential Capital Gains Tax advantages on sale. From 6 April 2026:

Company gross assets limit raised from £30 million to £120 million
Employee limit raised from 250 to 500
Total value of unexercised options the company can have raised from £3 million to £6 million
Maximum exercise period extended from 10 to 15 years
The individual employee limit stays at £250,000

Options granted on or after 6 April 2024 must be notified to HMRC by 6 July after the end of the tax year in which they're granted. Miss it and the options lose their EMI status. The government has said it plans to remove the separate grant notification from April 2027. Agreeing the share valuation with HMRC before grant is optional but strongly recommended.

SEIS: the seed scheme

The Seed Enterprise Investment Scheme suits very early companies. Investors get 50% income tax relief on up to £200,000 a year. The company must, broadly:

Raise no more than £250,000 under SEIS in total
Have gross assets of no more than £350,000 before the investment
Have fewer than 25 full-time equivalent employees
Have been trading for less than three years
Not have previously issued EIS or VCT shares

EIS: the growth scheme

The Enterprise Investment Scheme gives investors 30% income tax relief. For shares issued on or after 6 April 2026:

Annual limit raised from £5 million to £10 million (£20 million for knowledge-intensive companies)
Lifetime limit raised from £12 million to £24 million (£40 million for knowledge-intensive companies)
Gross assets limits raised to £30 million before and £35 million after the investment
Employee limit of fewer than 500 full-time employees

Where founders slip up

Taking investment before checking eligibility, or issuing shares in the wrong order (SEIS before EIS)
Using money for a non-qualifying purpose, or not spending it within the time limits
Missing the EMI notification date, or granting options without a supportable valuation
Filing the SEIS1 or EIS1 compliance statement late, so investors can't claim their relief

Advance assurance from HMRC isn't compulsory, but most investors expect it. These schemes involve legal documents and, for investors, regulated investment advice, so FinPilot keeps your company-side numbers and filings ready and works alongside specialist lawyers and advisers for the rest.

Sources: Brodies: changes to EMI from April 2026, Ashfords: EMI 2026 reforms, Lewis Silkin: EMI grant notification deadline, Saffery: EIS, SEIS and VCT explained, British Business Bank: what is SEIS.

This guide is general information, correct at the date shown, and not advice for your specific situation. Rules change, so check the current position before acting.

EMI, SEIS and EIS explained for tech founders (2026 rules)