Company share option plans (CSOPs) are discretionary share option schemes which can be operated on an all employee basis but which are usually used on a selective basis.
If the statutory provisions are met, and the CSOP is correctly notified to HMRC, favourable tax treatment can result.
Particular issues can apply to CSOP options where the relevant company is undergoing a corporate event, including what impact the corporate event will have on existing CSOP options—and also whether the company is able to grant new CSOP options at or after that time. The structure and process of the corporate event will need to be considered in each case, alongside the CSOP legislation and HMRC guidance regarding the relevant corporate event. In addition, the particular terms of the company’s CSOP rules and grant documents will often be critical in determining what steps the company should be taking in the light of the corporate event, and the timing considerations that will be important to be aware of when doing so.
The following topics are looked at in this subtopic:
tax relief for the exercise of CSOP
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