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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

HM Revenue & Customs
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Schedule 4 Company Share Option Plan (CSOP): Shares to be used: Status of the company and its share capital

Paragraph 16 imposes two requirements:

  • one concerns the company whose shares may be used as scheme shares,
  • the other requires the scheme shares to form part of the ordinary share capital of that company.

These requirements should be considered in conjunction with paragraph 17 which concerns the “status” of the company whose shares are to be used in the scheme. For example, if the scheme shares are in a company which is a subsidiary, it must be listed on a recognised stock exchange (see ETASSUM43220).