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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

Enterprise Management Incentives (EMI): Taxation of EMI options: Disqualifying events – grant of a Schedule 4 CSOP option

There is a disqualifying event when an employee is granted a Schedule 4 CSOP option on top of unexercised Schedule 4 CSOP and EMI options taking the employee beyond the £250,000 limit on holding options over shares.

A Schedule 4 CSOP option is an option granted under Schedule 4 Income Tax (Earnings and Pensions) Act 2003 by the employing company or, if it a member of a group, by any member of that group (Section 536(1)(e) ITEPA) (see ETASSUM41230).