http://www.legislation.gov.uk/ukpga/2003/1/section/521/enactedIncome Tax (Earnings and Pensions) Act 2003Temporary employmentKing's Printer of Acts of Parliament2021-08-04 Part 7Employment income: share-related income and exemptionsChapter 8Approved CSOP schemesIntroductionApproved CSOP schemes 521 1 This Chapter provides— a for the approval of CSOP schemes by the Inland Revenue, 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 the Inland Revenue under Schedule 4 (see paragraph 1 of the Schedule); “CSOP scheme” means a scheme (commonly referred to as a company share option plan) which— is established by a company, provides for share options to be granted to employees and directors, and 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.