Income Tax (Earnings and Pensions) Act 2003 section 28B-28C

Annual returns

Sections 28B and 28C set out the annual return obligations for CSOP scheme organisers, including deadlines, content requirements, correction duties, and a tiered penalty regime for late or missing returns.

• The scheme organiser must file an annual return with HMRC by 6 July following each tax year, starting from the year the scheme's relevant date falls in, and continuing until the termination condition is met
• Returns must include all information HMRC requires to determine tax and capital gains tax liabilities of scheme participants and other relevant persons, plus declarations confirming that any alterations to key scheme features have not caused the scheme to breach its qualifying requirements
• If the scheme organiser discovers any omission, incorrect inclusion, or other error in a return, they must submit an amended return to HMRC without delay
• Penalties for late returns start at £100, rising to a further £300 after three months and then £10 per day after nine months, though a reasonable excuse defence is available