Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 36

Minor definitions

Schedule 4 paragraph 36 provides key definitions and interpretive rules used throughout the Company Share Option Plan (CSOP) code, covering the meaning of "company", "market value", consortium ownership, and restricted shares.

• A "company" means any body corporate, and "market value" takes its meaning from Part 8 of the Taxation of Chargeable Gains Act 1992.
• A company is a member of a consortium owning another company if the consortium members together beneficially own at least 75% of the other company's ordinary share capital, and each member individually owns at least 5%.
• Shares are "restricted" if any contract, agreement, arrangement or condition exists that would fall within the restricted securities provisions of section 423 if those provisions were applied to the shares in question.
• The "restriction" itself is defined as the specific contractual or other provision that gives rise to the restricted status of the shares.