Several UK company tax incentives changed in April 2026, but they do not form a single automatic entitlement. Founders need to distinguish employee options, company fundraising limits, investor relief and taxes on securities transfers.
EMI: larger limits, with conditions
From 6 April 2026, the general EMI limits increased to £120 million gross assets, fewer than 500 employees and £6 million of qualifying company options. The maximum exercise period increased to 15 years. The higher limits do not apply to specified employers registered in Northern Ireland and trading in goods or providing electricity. Other trading, independence and employee conditions still apply. See HMRC’s EMI expansion note.
For eligible existing options, extension is not automatic. Options must not already have lapsed, expired or been exercised; contractual amendments may be required, and the longer exercise period concerns exercise on or after 6 April 2026.
Notification correction: for grants on or after 6 April 2024, HMRC must be notified by 6 July following the end of the tax year of grant. The old 92-day rule applies to earlier grants. Annual scheme reporting is a separate duty. Follow HMRC’s notification instructions and retain the submission confirmation.
EIS and VCT: company and investor changes
The general company fundraising limits became £10 million annually and £24 million over a lifetime, or £20 million and £40 million for knowledge-intensive companies. Gross-asset ceilings became £30 million before share issue and £35 million afterwards. Specified Northern Ireland companies retain lower limits. The figures are company limits, including relevant scheme investment, not each investor’s annual allowance. See the EIS/VCT changes.
For investors, upfront VCT Income Tax relief fell to 20% for qualifying shares issued from 6 April 2026; EIS remains at 30%. Entitlement depends on the relevant investment, holding period, personal tax liability and other conditions. A comparison of relief percentages does not establish which investment is suitable or more liquid.
Listings relief started earlier
UK Listing Relief concerns agreements to transfer chargeable securities in a company first listed on a UK regulated market on or after 27 November 2025. Subject to conditions, it removes the 0.5% SDRT charge for three years from first listing. It does not remove the higher 1.5% SDRT charge or Stamp Duty. Check HMRC’s current overview. It is not an April 2026 commencement measure and does not guarantee buyers, liquidity or a stable share price.
Read forecasts as forecasts
In its 7 April 2026 announcement, the government estimated around £100 million of additional annual investment from the package and described the potential reach of the EMI expansion. These are government estimates, not measured investment receipts or evidence that an individual company now qualifies.
A founder’s review sequence
ObvioTech assessment: start with the actual decision—an option grant, financing round or prospective listing. Assign an adviser to establish the applicable date and conditions. Then model the commercial outcome with and without the anticipated relief, including administration costs and failure scenarios.
- For options, check the employer, employee, valuation and agreement before relying on EMI treatment.
- For a round, distinguish company eligibility from each investor’s claim and retain the compliance evidence.
- For a listing, check market eligibility and the specific securities transaction.
- Keep submission dates and confirmations in a reviewable record.
These controls make assumptions visible; they are not a certification or a promise of funding. General information only—take qualified advice before making a tax, investment or legal decision.
