Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 7

Requirements relating to the eligibility of individuals: introduction

Schedule 4 paragraph 7 introduces the two key eligibility requirements that individuals must satisfy in order to participate in a Company Share Option Plan (CSOP) scheme.

• A CSOP scheme must meet specific requirements relating to the eligibility of individual participants.
• The first requirement is the employment requirement, which governs who qualifies based on their employment status.
• The second requirement is the "no material interest" requirement, which restricts participation by individuals who hold a significant interest in the company.
• Both requirements must be satisfied for the scheme to qualify as a valid CSOP scheme.