💰 Share option plan rules

About this category

A share option plan rules covers the eligibility requirements for employees to participate in the plan, the maximum number of shares that can be granted to an employee under the plan, and the vesting schedule of the options.

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💰 Share option plan rules


Schedule 4 Rules For A Company Share Option Plan (Csop)

The following is a template for a company share option plan (CSOP) that meets the requirements of Schedule 4 of the Income Tax (Earnings and Pensions) Act 2003.

What to watch out for

  • The rules of the CSOP
  • The requirements of Schedule 4 of the Income Tax (Earnings and Pensions) Act 2003.
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    Associated business activities

    Grant share option

    1. A share option plan is a set of rules that allows employees to purchase shares in the company they work for at a set price. 2. This can be beneficial for employees as it allows them to buy shares at a discounted price, and can also be a good way for companies to reward and retain employees. 3. Share option plans can also be used as a tax-efficient way to invest in a company, as any gains on the sale of shares are taxed at a lower rate than other forms of income.