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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: Recognised Stock Exchange (RSE)

Recognised Stock Exchange” is defined in Section 1005 ITA 2007 as:

  1. The Stock Exchange,
  2. any such stock exchange outside the United Kingdom as is for the time  being designated for the purposes of this section as a recognised stock exchange by order made by the Board.

Further information and a list of stock exchanges that have been recognised by order made by the Commissioners for HMRC can be found at

The list of recognised stock exchanges has since 1970 included any exchange registered with the Securities and Exchange Commission (SEC) of the United States as a national securities exchange. This definition includes the New York Stock Exchange (NYSE) and NASDAQ Stock Market.

Shares on the AIM (the Alternative Investment Market which came into being in July 1995) do not satisfy the requirements of paragraph 17(a). Although these markets are part of the Stock Exchange, they are not “listed” on it, i.e. included on the Official List.