Income Tax (Earnings and Pensions) Act 2003 section 539

CSOP and other options relevant for purposes of section 536

Section 539 defines the key terms — "relevant CSOP option", "employee option" and "CSOP option" — used when determining whether the grant of a CSOP option triggers a disqualifying event under the EMI rules.

• A "relevant CSOP option" is a CSOP option granted to the employee because of their employment with the employer company, or with any member of the employer's group of companies
• An "employee option" covers the original EMI qualifying option, any other EMI qualifying option granted through the same employment, or any relevant CSOP option
• A "CSOP option" is an option to acquire shares under a scheme that qualifies as a Schedule 4 CSOP scheme
• These definitions matter because a disqualifying event occurs if, after a CSOP option is granted, the total unrestricted market value of shares under the employee's unexercised EMI and CSOP options exceeds £100,000

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