Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 8

The employment requirement

Schedule 4 paragraph 8 sets out who is eligible to receive share options under a company share option plan (CSOP), based on their employment or directorship status.

• Only full-time directors or qualifying employees may be granted share options under the scheme
• Eligible individuals must be employed by or direct the scheme organiser, or a constituent company in a group scheme
• A qualifying employee is any employee of the company who does not also hold a directorship in the company or any constituent company in the group
• The eligibility test applies at the time the share option is granted