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.
Pursuant to a CSOP, each employee can receive share options to buy company shares worth up to £60,000 (with effect from 6 April 2023; previously £30,000) as valued (ignoring any restrictions) at the date of grant or such earlier agreed time.
This subtopic comprises of notes detailing:
the income tax and National Insurance contributions (NICs) treatment of CSOP options, and
the capital gains tax (CGT) treatment of CSOP options and the availability of a corporation tax deduction for the employer
The legislation which governs CSOPs consists of:
sections 521–525 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)
ITEPA 2003, Sch 4, Pt 1–8, and
Schedule
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
CONTACT US
