In September’s mini-Budget, changes were announced for company share option plans (CSOPs). From April 2023, the CSOP limit will double to £60,000 and share class restrictions will be relaxed. Whilst CSOP is a UK tax-advantaged option plan, like enterprise management incentives (EMI), CSOP options can generally only be exercised income tax free after three years and the increased limit remains considerably lower than EMI. Nevertheless, these changes widen access to companies who have outgrown EMI but are currently prevented from operating a CSOP, including venture-capital backed companies and others with multiple share classes.
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In September’s mini-Budget, changes were announced for company share option plans (CSOPs). From April 2023, the CSOP limit will double to £60,000 and share class restrictions will be relaxed. Whilst CSOP is a UK tax-advantaged option plan, like enterprise management incentives (EMI), CSOP options can generally only be exercised income tax free after three years and the increased limit remains considerably lower than EMI. Nevertheless, these changes widen access to companies who have outgrown EMI but are currently prevented from operating a CSOP, including venture-capital backed companies and others with multiple share classes.
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