Section 521 — Income Tax (Earnings and Pensions) Act 2003: ... CSOP schemes

... CSOP schemes 521 1 This Chapter provides—

a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b for exemptions from income tax in connection with share options granted under CSOP schemes which are Schedule 4 CSOP schemes, and c for amounts to count as employment income in certain circumstances in connection with such options. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 The provisions of—

a this and the following sections of this Chapter, b Schedule 4, and c Part 3 of Schedule 7D to TCGA 1992 ( Schedule 4 CSOP schemes: amount of consideration on exercise of option), together constitute “the CSOP code”.

4 In the CSOP code— ... “ CSOP scheme ” means a scheme (commonly referred to as a company share option plan) which—

is established by a company, provides for share options to be granted to employees and directors, and is not an SAYE option scheme (within the meaning of the SAYE code: see section 516(4)); “ Schedule 4 CSOP scheme ” is to be read in accordance with paragraph 1 and Part 7 of Schedule 4; “ share option ” means a right to acquire shares in a company; “ shares ” includes stock.

5 Other expressions used in the CSOP code and contained in the index at the end of Schedule 4 have the meaning indicated by the index.