As part of the infamous Mini-Budget published on 23 September 2022, the then-Chancellor announced some surprise changes to HMRC’s rules around ‘CSOP option’ grants – and they’re some of the few changes announced in that rather ill-fated reform package still to be going ahead.
The individual limit on the total market value of shares under CSOP options at grant has been kept at £30,000 for almost thirty years, inexorably eroding their value. Now the limit is hiking to £60,000 from 6 April 2023, and coupled with a relaxation to the rules around which companies can grant them, it’s reinvigorated conversations around what purpose CSOP options serve – or in other words, “can we use them, and how good are they?”
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