Upcoming Changes To The Company Share Options Plan Regime

Company share option plans (CSOP) and enterprise management incentives (EMI) are two statutory share option regimes that can be used to incentivise employees in a tax-efficient way. Broadly, where the relevant qualifying criteria have been met, both the CSOP and EMI schemes allow employees to acquire shares in their employer (or its group) for less than the value of the shares at the time that the options are exercised without triggering a benefit in kind employment tax charge.

Since the creation of the EMI regime, many small businesses in the UK that meet the relevant qualifying conditions have granted EMI options as an effective and efficient employee incentivisation tool. Historically, the uptake of CSOP options has been far lower.