SVM110020 - Tax Advantaged Share Schemes: Approved Company Share Option Plans (CSOP)

These schemes were previously called approved discretionary or executive share option schemes. They are now described as company share option plans. A company, which operates an approved CSOP, may grant to any of its employees or full-time directors an option to acquire shares.

The scheme shares must be:

• Shares of a class quoted on a recognised stock exchange or
• Shares in a company which is not under the control of another company or
• Shares in a company which is under the control of a company whose shares are quoted on a recognised stock exchange (other than a company which is, or would if resident in the United Kingdom, be a close company within the meaning of the relevant legislation).

The price at which the options allow the shares to be purchased is the market value of the shares at the time the option is granted.

Market value is computed in accordance with the normal CGT basis at the date of grant (or such earlier date as the rules allow).

CSOP guidance is available in the Employee Share Schemes User Guide at ESSUM40000.