In his mini-budget on 23 September 2022, Chancellor Kwasi Kwarteng announced that the limits on the value of options that can be granted under Company Share Option Plans (CSOP) are to be increased.

CSOPs are approved tax-advantaged share option plans which allow employers to grant share options to employees and directors, subject to certain conditions.

From April 2023:

  • Qualifying companies will be able to issue up to £60,000 of CSOP options to employees. The current limit is £30,000.
  • Rules restricting the share classes which may be used by companies granting options under CSOP are to be relaxed, bringing the rules closer to those for the Enterprise Management Incentive Scheme (EMI). Currently, only one class of shares may be in issue if shares options are to qualify for tax advantages under the CSOP rules.

Useful guides on this topic

Mini-budget 2022: at a glance
A summary for SMEs and their owners

External link

The Growth Plan 2022: policy paper 

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