Budget 2010 – Company share option plans
New anti-avoidance measures to prevent the use of HMRC approved Company Share Option Plans (CSOP) in subsidiaries of listed companies are to be introduced.
The anti-avoidance measures will counter avoidance by restricting the type of shares which can be used in CSOP. The legislation will be amended so that shares in a company which is under the control of a listed company will no longer be shares to which an approved CSOP scheme could apply.
The new rules will have effect in relation to options granted over shares in a company which is under the control of a listed company on or after 24 March 2010.
The measure allows companies a transitional period of six months (23 December 2010) to amend their scheme rules to bring them into line with this change, if an amendment is necessary.