Income Tax (Earnings and Pensions) Act 2003 section 28A

Notice of scheme to be given to HMRC

Section 28A sets out the requirement for a CSOP scheme organiser to notify HMRC in order for the scheme to qualify as a Schedule 4 CSOP scheme, including the content of the notice, the applicable deadlines, and the consequences of late notification.

• A CSOP scheme only becomes a Schedule 4 CSOP scheme once HMRC has been properly notified by the scheme organiser, with the required information and a declaration that the scheme meets the legislative requirements.
• If notice is given on time (by 6 July in the tax year following the year of the first option grant), the scheme qualifies as a Schedule 4 CSOP scheme from the relevant date — either the date of the declaration or, if later than the first grant, from the first grant date itself.
• If notice is given after the initial notification deadline, the scheme only qualifies as a Schedule 4 CSOP scheme from the beginning of the relevant tax year, unless the scheme organiser can demonstrate a reasonable excuse for the late notification.
• HMRC must decide whether a reasonable excuse exists within 45 days of receiving the scheme organiser's request; if HMRC fails to respond within that period, they are treated as having decided that no reasonable excuse existed and must notify the scheme organiser accordingly.

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