The following Share Incentives guidance note provides comprehensive and up to date legal information covering:
A valuation of the shares granted under company share option plan (CSOP) options will often be required at different stages of the option's life.
A share valuation at the time of grant of CSOP options may be required:
to ensure that the exercise price complies with the CSOP legislation stating that the exercise price of the options must be:
stated at the time of grant, and
not manifestly less than the market value (ignoring any restrictions) of shares of the same class at the time of grant
to ensure that the initial unrestricted market value (UMV) of the shares (this is the market value of a share ignoring any restrictions and risks of forfeiture) under option do not exceed the individual limit of £30,000. For further details on the CSOP limit see Practice Note: CSOP—requirements for the options: market value, and
to determine whether and, if so, the extent to which the option is taxable on grant. The option will be taxable on grant where the aggregate of the:
amount of any consideration given at grant by the individual, and
the maximum exercise price of the CSOP option is less than the market
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