Part 7Employment income: income and exemptions relating to securities

Chapter 8Approved CSOP schemes

Introduction

521Approved CSOP schemes

(1)

This Chapter provides—

(a)

for the approval of CSOP schemes by F1an officer of Revenue and Customs ,

(b)

for exemptions from income tax in connection with share options granted under those schemes, and

(c)

for amounts to count as employment income in certain circumstances in connection with such options.

(2)

Schedule 4 contains the requirements that have to be met for a CSOP scheme to be approved, together with the approval procedure.

(3)

The provisions of—

(a)

this and the following sections of this Chapter,

(b)

Schedule 4, and

(c)

Part 3 of Schedule 7D to TCGA 1992 (approved CSOP schemes: amount of consideration on exercise of option),

together constitute “the CSOP code”.

(4)

In the CSOP code—

“approved” means approved by F1an officer of Revenue and Customs under Schedule 4 (see paragraph 1 of the Schedule);

“CSOP scheme” means a scheme (commonly referred to as a company share option plan) which—

(a)

is established by a company,

(b)

provides for share options to be granted to employees and directors, and

(c)

is not an SAYE option scheme (within the meaning of the SAYE code: see section 516(4));

“share option” means a right to acquire shares in a company;

“shares” includes stock.

(5)

Other expressions used in the CSOP code and contained in the index at the end of Schedule 4 have the meaning indicated by the index.