Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 23

Share options must not be transferable

Paragraph 23 requires that a CSOP scheme must prevent participants from transferring their share options to another person.

• Share options granted under a CSOP scheme must not be capable of being transferred by the participant
• This is a mandatory requirement that the scheme itself must enforce
• The non-transferability rule applies to all share options granted under the scheme
• Separate provision exists (in paragraph 25) for the exercise of options where a participant has died