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

General requirements: introduction

Paragraph 4 of Schedule 4 introduces the general requirements that a Company Share Option Plan (CSOP) must satisfy, specifying the two key conditions the scheme needs to meet.

• A CSOP scheme must comply with two general requirements set out in paragraphs 5 and 6 of Schedule 4.
• The first requirement is a general restriction on the contents of the scheme — limiting what provisions the scheme may contain.
• The second requirement imposes a cap on the total value of shares that may be placed under option to any individual participant.
• Both requirements must be met for the scheme to qualify as a tax-advantaged CSOP.