Income Tax (Earnings and Pensions) Act 2003 section Schedule 4 paragraph 6

Limit on value of shares subject to options

Section Schedule 4 paragraph 6 sets out the maximum value of shares over which an individual may hold unexercised options under a Company Share Option Plan (CSOP) scheme.

• The total market value of shares under unexercised CSOP options held by an individual must not exceed £60,000 at the time any new option is granted, taking into account all CSOP schemes operated by the same company or its associates.
• Options that have already been exercised are ignored when calculating whether the £60,000 limit has been reached.
• Market value is determined at the date the option was granted (or an earlier date if specified in a pricing agreement under paragraph 22), and any restrictions on the shares are disregarded for valuation purposes.
• The Treasury has the power to change the £60,000 limit by regulations.