Part 7Employment income: income and exemptions relating to securities

Chapter 8... CSOP schemes

Introduction

521... CSOP schemes

(1)

This Chapter provides—

(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)

for exemptions from income tax in connection with share options granted under F1CSOP schemes which are Schedule 4 CSOP schemes, and

(c)

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

(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 (F2Schedule 4 CSOP schemes: amount of consideration on exercise of option),

together constitute “the CSOP code”.

(4)

In the CSOP code—

...

“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));

F3“Schedule 4 CSOP scheme” is to be read in accordance with paragraph 1 and Part 7 of Schedule 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.