Autumn Budget 2026: Enterprise management incentives 2 (EMI2) (formerly company share option plans (CSOP))
CSOP is a tax-advantaged employee share option plan which was used mainly by companies that were unable to utilise the more generous EMI scheme.
From 6 April 2027, CSOP will be renamed EMI2, and the following changes will be made to the scheme:
- Increase the limit on the amount of CSOP options an individual can be granted from £60,000 to £120,000.
- The interaction between the EMI2 and EMI individual option limits will be removed, allowing individuals to fully utilise both the £250,000 EMI limit and the £120,000 EMI2 limit, where qualification exists for both schemes.
- The maximum exercise period for EMI2 will be aligned with EMI, from 10 years to 15 years.
The EMI2 options must still be held for at least three years before exercise to benefit from no income tax and NIC charge for the employee.
