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HMRC clarified in recent guidance that companies do not need to revise existing scheme plans rules to align with the increased Company Share Options Plan (CSOP) limit. The news will be welcome news for companies who were considering amending their CSOP rules to accommodate for the increased share option limit from GBP 30,000 to GBP 60,000.
Changes to the CSOP limit and to share class restrictions were announced in September 2022. Both changes will take effect automatically from 6 April 2023.
HMRC intend to provide further information on the changes in due course. The ERS guidance, technical notes and the Employee Tax Advantaged Share Scheme User Manual will be updated to reflect the changes being introduced from April 2023.
For further information on the CSOP updates please see our previous insight - UK: Changes to Company Share Option Plans (‘CSOPs’) - Baker McKenzie InsightPlus.
Source: gov.uk Employment Related Securities Bulletin 47 (January 2023)
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