The 2008 Budget included the following significant changes to the EMI option regime:

• Only companies with fewer than 250 employees will be able to grant EMI options (from the date Royal Assent is granted to the Finance Bill 2008, which is expected to happen in July). The restriction is to comply with EU guidelines on state aid. A part-time employee will not be counted as a full-time employee for the purposes of the 250 employee limit. According to the Budget press release, a just and reasonable fraction for each part-time employee will be added to the number of full-time employees. Previously there was no limit on the number of employees in qualifying EMI companies. Affected companies are likely to consider using a Company Share Option Plan ("CSOP") options with top-up unapproved share incentives as an alternative.
• Shipbuilding, steel and coal production will be excluded trades (from the date Royal Assent is granted to the Finance Bill 2008).
• The limit on the value of shares that can be placed under EMI options granted to any one employee within a period of three years has been raised from £100,000 to £120,000 (from 6 April 2008). This increase in the limit hardly makes up for the impact of the withdrawal of taper relief on the attractiveness of EMI options and the new restriction on the maximum number of employees in eligible companies. Nevertheless, EMI remains the most tax-efficient share scheme for SMEs to incentivise their employees.