Setting up and administering CSOPs

Produced by Tolley in association with

Employment Tax

Guidance

Introduction

A company share option plan (CSOP) requires online self-certification by the company. 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 CSOP options granted and exercised, as well as those that have lapsed during the previous 12 months and confirmation the scheme still meets the legislative requirements. 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:

•
notice of the scheme must be given to HMRC (online) by the scheme organiser
•
that notice must contain or be accompanied by such information as HMRC may require
•
the notice must also contain a declaration that the requirements of the

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Helen Wood

Founder, HLN WD TX , Employment Tax

Helen Wood is the founder of HLN WD TX, a share schemes and employee incentives advisory business.She qualified as a CA with ICAS in 2009 and has worked as a specialist reward and incentives advisor for 17 years, spending 13 of those at KPMG followed by 3 ½ years as an Associate Director at RSM. Helen has worked with businesses ranging from start-ups to fully listed companies, spanning owner-managed businesses, private equity portfolio companies, and AIM listed businesses.She advises on a wide range of employee share schemes and employment related securities matters including the design and implementation of effective management and employee incentives; tax valuation of employment related securities, buy and sell side transaction support, HMRC compliance, tax due diligence and employee ownership trust transactions.

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