A company share option plan (CSOP) is a common form or employee share ownership plan.
Exercise of the option
If the option is exercised in accordance with the CSOP there will normally be no charge to income tax , see E4.588. If the employee has acquired the shares as the result of an exercise of an option that was exempt from income tax, the acquisition cost when computing the gains is not market value as might otherwise be required by TCGA 1992, s 17(1); see C2.109, C2.204 but the actual consideration paid 1, both for the option and for the shares2. Neither is market value substituted for that consideration when computing the gain on the corresponding disposal of the shares to the employee (that is, when, exceptionally,
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