EIS and EMI limit increases bring more UK businesses into scope

The expansion of the Enterprise Investment Scheme (EIS) and the Enterprise Management Incentive (EMI) scheme in the November 2025 Budget represents a targeted attempt to bring a wider group of growing UK businesses within the scope of the UK’s tax advantaged share and investment schemes. These changes are focused on addressing the “scale‑up gap” in the UK.

The expansion opens funding for later stage and capital intensive companies

The EIS is designed to allow UK early-stage businesses (usually less than around 7 years old) to more easily raise capital, as without the schemes in place external investors would likely deem these companies too risky to invest in.

Previously as businesses begin to scale EIS eligibility has been lost due to the asset and investment limits in place. Meaning companies were excluded from the EIS at precisely the point they required larger funding rounds.

By doubling the lifetime and annual investment limits and the gross asset threshold, the EIS is now likely to become available to:

• Later‑stage venture‑backed companies raising larger Series B and C rounds
• Capital‑intensive businesses
• Larger founder‑led businesses with strong early revenues

Widening share option access for scaling UK businesses

EMI options provide an alternative way of remunerating staff which is designed to allow UK companies to recruit and retain the most talented individuals whereby the company grants to their employees an option to buy shares in their company at a later date and usually at less than market value at the time.

For EMI by doubling the employee headcount limit, doubling the total value of options a company can grant and quadrupling the gross asset limit, it is no longer restricted to small, early‑stage companies.

Likely businesses that will now fall inside the EMI scheme may include:

• Companies that have already granted EMI options up to the total value limit
• Capital heavy UK scale ups in biotech, fintech and life sciences

How Gravita can help

Whilst the increased limits will make these schemes more available, both the EMI and EIS schemes are technically complex. For both, Gravita can assist by:

• Reviewing eligibility and advising on implementation
• All compliance with HMRC. For EMI, specifically advance assurances; valuations; registrations; notifications and submissions. For EIS, specifically advance assurances; compliance statements and certificates
• Ongoing advisory and support