Material interest rules for CSOPs, EMI options and employee shareholder status

This practice note considers the requirement that participating employees and/or their associates must not have a material interest in the company whose shares are used for company share option plans (CSOPs) and enterprise management incentives (EMI) options. It includes the special rules relating to employee benefit trusts and other discretionary trusts.

This note also considers the requirement that a shareholder who has a material interest in a company or its parent undertaking will not qualify for the income tax and capital gains tax reliefs associated with employee shareholder status.

Practical Law Share Schemes & Incentives, based on material originally contributed by Sara Cohen, Lewis Silkin LLP


 

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