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Setting up and administering CSOPs

Produced by Tolley in association with
Employment Tax
Guidance

Setting up and administering CSOPs

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Introduction

Until 2014/15, a company share option plan (CSOP) was one of the three types of tax-advantaged share schemes that required HMRC approval (the others being SIPs and SAYE option schemes). From 2014/15 onwards, the requirement for HMRC approval is replaced with a system of online self-certification.

HMRC has provided a review document at ETASSUM47190 which is intended to enable those setting up a scheme to ensure that they do not forget to include any of the legislative requirements.

Once the scheme is in operation, an online end of year return must be submitted each year showing information such as options granted and exercised, as well as those that have lapsed during the previous 12 months. See below for more on annual returns and the penalties for late filing.

Registration and self-certification

A qualifying CSOP scheme is referred to as a ‘Schedule 4 CSOP scheme’. For a CSOP scheme to qualify:

  1. •

    notice of the scheme must be given to HMRC (online) by the scheme organiser

  2. •

    that notice must contain or be accompanied

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Ken Moody
Ken Moody

Tax Consultant at KM Tax Consultant 


Ken Moody CTA (Fellow), ATT has worked in tax for over 40 years. He qualified as an Associate of the Chartered Institute of Taxation (CIOT) while working for a local firm of Chartered Accountants in his home town Sheffield. Ken then joined a top 30 London firm, managing the tax affairs of a SE-quoted group of companies. As lead tax adviser, this involved complex technical negotiations with HMRC, briefing and meeting with Tax Counsel, group tax planning and advice on corporate transactions. Following a takeover, Ken took on a similar role in Saffery Champness' London office. Since 1995, Ken has worked for firms in the North of England and Scotland, in mainly advisory roles, focussing on the holistic tax affairs of owner-managed businesses (OMBs) and their proprietors. Ken now works as an independent tax consultant advising a number of professional firms of accountants around the North West, where he is based, but also offering nationwide support. Still with an OMB focus, Ken advises across a broad range of UK direct tax issues. Ken's writing career began with articles in Taxation and Tax Journal from about 2000 onwards and in writing in-house tax publications for DTE in Bury, as part of his role as Senior Tax Manager. He has since written numerous articles for professional magazines and other publications. Ken was awarded the Fellowship of the CIOT in 2011 for his work "Employment-Related Securities and Unlisted Companies".

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