Participating employees and/or their associates must not have a material interest in a company whose shares are used for company share option plans (CSOPs), enterprise management incentive (EMI) options, or employee shareholder status, or certain companies connected with such a company. This checklist provides a summary of the material interest rules.

On 23 November 2016, the Chancellor of the Exchequer announced that the tax reliefs associated with employee shareholder status will not be available in relation to shares acquired in consideration of employee shareholder agreements made on or after 1 December 2016 (or, where independent advice was received on 23 November 2016 before 1.30 pm, 2 December 2016).