How the 2026 Entrepreneurship Tax Relief Package Benefits Your Business
The UK business landscape has just received a significant boost. As of 6 April 2026, a comprehensive entrepreneurship tax relief package has come into effect, designed to funnel approximately £100m of new private investment into the economy every year.
First introduced in the 2025 Autumn Budget, these measures are a clear signal that the government is committed to making the UK the premier destination for starting and scaling a business.
For founders and investors alike, these changes offer fresh opportunities to secure funding, reward teams, and accelerate growth.
Empowering Teams with EMI Reform
One of the most impactful updates involves the Enterprise Management Incentives (EMI) scheme. Recognising that talent is the primary engine of any scale-up, the government has significantly lowered the barriers to entry.
The gross assets threshold has been quadrupled from £30m to £120m. Furthermore, the employee limit has doubled to 500, and the total share option limit has risen to £6m.
These adjustments mean that approximately 1,800 high-growth firms in sectors like AI and fintech can now offer tax-advantaged shares to their staff, helping them compete with global giants for the best talent.
Fueling Innovation through EIS and VCTs
To combat recent slowdowns in venture capital, the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) have seen their limits doubled.
Lifetime investment limits for companies have risen to £24m.
Annual investment limits have increased to £10m.
Gross asset tests are now capped at £30m before share issue.
While the VCT income tax relief for investors has been adjusted to 20% to align with the EIS, the overall goal is clear: to encourage a steady flow of capital into the UK’s most innovative, high-risk startups.
Long-term Support and Public Listings
The package extends beyond immediate tax breaks. The British Business Bank has launched a Five Year Strategic Plan to unlock billions in private capital, specifically targeting growth-stage funds.
Additionally, a new three-year Stamp Duty Reserve Tax exemption for UK listings has been introduced. This "UK Listing Relief" is a world first, designed to ensure that when our scale-ups are ready to go public, they choose to stay and grow right here in Britain.
At Zyla Accountants, we specialise in helping founders navigate these complex schemes. If you want to know how these new thresholds impact your eligibility for EMI or EIS, get in touch with our team today.