What is the purpose of Schedule 4 paragraph 37 of ITEPA 2003?

Paragraph 37 provides a consolidated index of every defined expression used throughout the CSOP code. It acts as a central reference directory, listing each technical term and directing readers to the specific legislative provision — whether in Schedule 4, the main body of ITEPA 2003, or the Income Tax Act 2007 — where that term is formally defined.

Where are the defined terms in the CSOP code located?

Definitions come from three main sources under United Kingdom law. Several terms are defined within Schedule 4 itself, including associated company and group scheme. Others sit in the main body of ITEPA 2003, such as connected person and control. General tax terms like close company and ordinary share capital take their meanings from sections 989 and 1005 of the Income Tax Act 2007.

Why do some terms in paragraph 37 carry dual references?

Some terms have a primary definition in one statute and a supplementary provision elsewhere in the CSOP code. For example, close company is defined in ITA 2007 section 989 but is further addressed in paragraph 9(4) of Schedule 4. Both references must be consulted together to obtain the complete legal meaning of the term within the CSOP context.

How does an adviser use the index in paragraph 37 when setting up a CSOP scheme?

An adviser consults the index to locate the precise statutory definition of any technical term used in the CSOP legislation. For instance, to confirm whether a company qualifies as a close company, the index directs the adviser to ITA 2007 section 989 for the general definition and then to Schedule 4 paragraph 9(4) for additional CSOP-specific rules.

Income Tax (Earnings and Pensions) Act 2003 section Schedule 4 paragraph 37

Index of defined expressions

Section Schedule 4 paragraph 37 provides a comprehensive glossary of all defined terms used throughout the CSOP code, directing readers to where each definition can be found.

The paragraph acts as a central reference point, listing every defined expression used in the CSOP legislation and pointing to the specific provision where each term is explained.
Some definitions are found within Schedule 4 itself (such as associated company, constituent company, group scheme, market value, participant and scheme organiser), while others are drawn from the main body of ITEPA 2003 (such as employee, connected person and control).
A number of widely used statutory terms — including close company, distribution, notice, ordinary share capital, personal representatives, recognised stock exchange and tribunal — take their meanings from section 989 or section 1005 of the Income Tax Act 2007.
Certain entries carry dual references, indicating that a term is defined in one place but further qualified or supplemented elsewhere (for example, close company is defined in ITA 2007 section 989 but is also addressed in paragraph 9(4), and control is defined in ITEPA 2003 section 719 but supplemented by paragraph 35(2)).

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