What is a Company Share Option Plan (CSOP)?

A CSOP is a tax-advantaged discretionary share option plan, most often used by companies that do not qualify for EMI — usually because they have exceeded the employee limit or carry out an excluded trade to be eligible for EMI.

Options can be exercised tax efficiently three years after grant. The exercise price must be set at full market value on the date of grant, so CSOP options cannot be granted at a discount. CSOP options can  be granted over any class of share, which private companies in particular may find useful.

Read more about CSOPs.