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CSOP Share Options Calculator 2024/25

Company Share Option Plan (CSOP): no income tax or NIC on grant or exercise (within the 3–10 year window). CGT only on sale. From April 2023, the limit was doubled to £60,000 per employee. No company size restrictions — ideal for companies too large for EMI.

CSOP Options Calculator

Company Share Option Plan — 2024/25. No income tax/NIC on exercise (3–10 year window). CGT on sale.

Must equal market value at grant date — CSOP requires options to be granted at market value

Price per share at which you expect to sell

CSOP tax advantages apply only if exercised between 3 and 10 years from grant

Used to estimate employee NIC rate for unapproved option comparison

Hold options 2+ years AND exercise 12+ months before sale — reduces CGT to 10%

Total grant date value£50,000.00
Total gain (exit - grant price)£75,000.00

CSOP (within 3–10 year window) — no income tax on exercise

Capital gain (after CGT exemption)£72,000.00
CGT — 10% (BADR)£7,200.00
Total tax (CSOP)£7,200.00
Net profit after tax (CSOP)£67,800.00

Comparison: Unapproved options (income tax on exercise)

Income tax (unapproved)£30,000.00
Employee NIC (unapproved)£1,500.00
Net profit (unapproved)£43,500.00
Income tax saving£22,800.00
NIC saving£1,500.00
Total tax saving from CSOP£24,300.00

Annual CGT exempt amount (2024/25): £3,000. Estimate only — consult a tax adviser.

5 CSOP Planning Tips

  1. Review existing CSOPs after the April 2023 limit increase: The per-employee limit doubled from £30,000 to £60,000 from April 2023. If you have participants near the old limit, you can grant additional options up to the new cap — providing more meaningful equity.
  2. CSOP works for companies too large for EMI: Unlike EMI, CSOP has no gross assets or employee headcount limits. It is the go-to approved option scheme for mid-sized companies and subsidiaries that do not qualify for EMI.
  3. Combine CSOP with SAYE for broad employee ownership: SAYE (Sharesave) must be offered to all eligible employees on the same terms. CSOP can be used selectively for senior staff. Running both schemes gives a comprehensive equity reward structure.
  4. Company and option holder must be independent at grant: CSOP requires the company to be independent — it cannot be a 51% subsidiary of another company at the point of grant. Check this carefully if you are part of a group structure.
  5. Missing the 3–10 year window triggers income tax: If an employee exercises before 3 years or after 10 years (except in certain good leaver or corporate event scenarios), the gain becomes subject to PAYE and NIC — exactly as if the options were unapproved. Diarise exercise windows carefully.

How CSOP Tax Works

CSOP options must be granted at or above market value at the date of grant. Exercise must occur between 3 and 10 years from the grant date to qualify for the income tax and NIC exemption. The employee pays CGT on sale based on the gain between the exercise price (= grant price) and the sale proceeds. Outside the 3–10 year window, the gain at exercise becomes taxable employment income — just like an unapproved option.

CSOP vs EMI at a Glance

  • CSOP limit: £60,000 per employee (from April 2023) — no company limit
  • EMI limit: £250,000 per employee, £3M company-wide — but strict qualifying conditions
  • CSOP exercise window: 3–10 years from grant
  • EMI exercise window: Up to 10 years from grant
  • BADR: Both can qualify — hold 2+ years, exercise 12+ months before sale