Finance (No. 2) Act 2023

16 CSOP schemes: share value limit and share class

(1) Schedule 4 to ITEPA 2003 (CSOP schemes) is amended as follows.

(2) In paragraph 6 (limit on value of shares subject to options)—

(a) in sub-paragraph (1), in the words after paragraph (b), for “£30,000” substitute “£60,000”;

(b) after sub-paragraph (4) insert—

“(5) The Treasury may by regulations amend sub-paragraph (1) by substituting a different sum of money for the sum for the time being specified there.”

(3) In paragraph 15 (requirements relating to shares that may be subject to share options: introduction), in sub-paragraph (1)—

(a) after the entry for paragraph 17 insert “, and”;

(b) omit the entry for paragraph 20 and the “, and” before it.

(4) Omit paragraph 20 (requirements as to other shareholdings).

(5) In paragraph 27 (requirement about share options granted in exchange), in sub-paragraph (4)(a), for “20” substitute “18”.

(6) The amendments made by subsection (2) have effect for the purposes of determining whether a share option may be granted to an individual on or after 6 April 2023 (“the commencement day”).

(7) The amendments made by subsections (3) and (4) have effect in relation to—

(a) share options granted on or after the commencement day, and

(b) shares acquired by the exercise of share options on or after the commencement day (regardless of when those share options were granted).

(8) The amendment made by subsection (5) has effect in relation to share options granted on or after the commencement day.

(9) A CSOP scheme which was approved by, or notified to, His Majesty’s Revenue and Customs before the commencement day has effect on and after the commencement day with any modifications needed to reflect the amendments made by this section.

(10) In particular, such a CSOP scheme has effect from the commencement day with—

(a) the substitution of “£60,000” for “£30,000” in any provision required by paragraph 6 of Schedule 4 to ITEPA 2003;

(b) the omission of any provision that (before the amendments made by this section) was required by paragraph 20 of that Schedule by virtue of paragraph 15(1) of that Schedule.

(11) In this section, “CSOP scheme” and “share option” have the same meaning as in the CSOP code (see paragraph 37 of Schedule 4 to ITEPA 2003).