SCHEDULES

SCHEDULE 4Approved CSOP schemes

Part 8Supplementary provisions

Power to require information

33

1

The Inland Revenue may by notice require any person to provide them with any information—

a

which they reasonably require for the performance of their functions under the CSOP code, and

b

which the person to whom the notice is addressed has or can reasonably obtain.

2

The power conferred by this paragraph extends, in particular, to—

a

information to enable the Inland Revenue—

i

to decide whether to approve a CSOP scheme or to withdraw an approval already given, or

ii

to determine the liability to tax, including capital gains tax, of any person who has participated in a scheme, and

b

information about the administration of a scheme and any alteration of the terms of a scheme.

3

The notice must require the information to be provided within a specified time, which must not end earlier than 3 months after the date when the notice is given.

Jointly owned companies

34

1

This paragraph applies for the purposes of the provisions of the CSOP code relating to group schemes.

2

Each joint owner of a jointly owned company is to be treated as controlling every company within sub-paragraph (3).

3

The companies within this sub-paragraph are—

a

the jointly owned company, and

b

any company controlled by that company.

4

However, no company within sub-paragraph (3) may be—

a

a constituent company in more than one group scheme, or

b

a constituent company in a particular group scheme if another company within that sub-paragraph is a constituent company in a different group scheme.

5

In this paragraph a “jointly owned company” means a company which (apart from sub-paragraph (2)) is not controlled by any one person and—

a

of which 50% of the issued share capital is owned by one person and 50% by another, or

b

which is otherwise controlled by two persons taken together.

6

In this paragraph “joint owner” means one of the persons mentioned in sub-paragraph (5)(a) or (b).

Meaning of “associated company”

35

1

For the purposes of the CSOP code one company is an “associated company” of another company at a given time if, at that time or at any other time within one year previously—

a

one has control of the other, or

b

both are under the control of the same person or persons.

2

For the purposes of sub-paragraph (1) the question whether a person controls a company is to be determined in accordance with section 416(2) to (6) of ICTA.

F1Retirement age

Annotations:
Amendments (Textual)
F1

Sch. 4 para. 35A and cross-heading inserted (10.7.2003) by Finance Act 2003 (c. 14), Sch. 21 para. 15(2)

35A

A retirement age specified in a CSOP scheme—

a

must be the same for men and women, and

b

must not be less than 55.

Minor definitions

36

1

In the CSOP code—

  • company” means a body corporate;

  • market value” has the same meaning as it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act.

2

For the purposes of the CSOP code a company is a member of a consortium owning another company if it is one of a number of companies—

a

which between them beneficially own not less than 75% of the other company’s ordinary share capital, and

b

each of which beneficially owns not less than 5% of that capital.

Index of defined expressions

37

In the CSOP code the following expressions are defined or otherwise explained by the provisions indicated below:

approved

section 521(4)

associated company

paragraph 35(1)

child

section 832(5) of ICTA, (and see section 721(6) of this Act)

close company

section 832(1) of ICTA, (and see paragraph 9(4))

company

paragraph 36(1)

connected person

section 718

constituent company

paragraph 3(3)

control

section 719 (and see paragraph 35(2))

the CSOP code

section 521(3)

CSOP scheme

section 521(4)

distribution

section 832(1) of ICTA

eligible shares (in Part 4 of this Schedule)

paragraph 15(2)

employee and employment

section 4

group scheme

paragraph 3(2) (and see paragraph 34)

the Inland Revenue

section 720(1)

market value

paragraph 36(1)

member of a consortium

paragraph 36(2)

notice

section 832(1) of ICTA

the options (in relation to a participant)

paragraph 2(2)

ordinary share capital

section 832(1) of ICTA

participant

paragraph 2(2)

participate

paragraph 2(2)

personal representatives

section 721(1)

recognised stock exchange

section 841 of ICTA

the scheme organiser

paragraph 2(2)

share option

section 521(4)

shares

section 521(4)

Special Commissioners

section 4 of TMA 1970

United Kingdom

section 830 of ICTA