Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

HM Revenue & Customs
, see all updates

Schedule 4 Company Share Option Plan (CSOP): Eligibility of individuals to participate: The employment requirement: Grant of options

A Schedule 4 CSOP scheme must only provide for options to be granted to current full time directors and employees of the company which established the scheme (or of a constituent company in a group scheme) who satisfy certain eligibility provisions. The scheme rules must make it clear how these eligibility provisions are to be interpreted.

Schemes may provide for options to be granted to:

  • qualifying employees (full-time or part-time employees who are not directors), and / or
  • full-time directors (see ETASSUM42130),

of the scheme organiser or any constituent company. The company may impose more stringent requirements which are acceptable.