For FinTechs competing for talent in a tight market, equity incentives remain a powerful tool. From April 2026, changes to Enterprise Management Incentives (EMI) significantly broaden who can benefit, allowing larger, later-stage FinTechs to continue using EMI as they scale, fundraise and plan for exit.
The upcoming EMI changes will provide a welcome boost for growing FinTechs. EMI options are commonly used by businesses to attract and retain key staff and can deliver equity to employees in a highly tax-efficient wrapper.
Three key changes to EMI will take effect from 6 April 2026:
Employee limit increasing
The full-time employee limit for EMI will increase from 250 to 500. This extends EMI to include some of the larger scale-up FinTechs, allowing them to continue granting EMI options as their workforce grows.
Gross assets limit increasing
The gross assets limit for EMI will increase from £30m to £120m. Again, this extends EMI to include some of the larger scale-up FinTechs. Whilst FinTechs are typically not asset-heavy, the current £30m limit is often breached just after a new fundraising round. The increase to £120m should ensure that the vast majority of fundraising rounds do not take FinTechs over the EMI gross assets limit.
Extending the life of EMI options to 15 years
EMI options typically have a 10-year horizon, due to EMI legislation only giving tax relief where options are exercised within 10 years of grant. Whilst 10 years is in most cases sufficient time for FinTechs to grow and exit, in some cases the exit timeframe is longer than this. The increase to 15 years allows larger businesses with a longer exit horizon to stick with their EMI options for longer. Helpfully, from 6 April this extension to 15 years can be done retrospectively by amending existing EMI options to extend to 15 years, without triggering adverse tax consequences.
If you’re reviewing your employee incentive strategy ahead of future fundraising or exit planning, our Business Tax team can help you assess eligibility, restructure existing EMI arrangements and ensure options remain tax efficient as your business grows.
Get in touch to discuss how these changes could support your people and growth strategy.
