Some companies can’t use EMI; others simply need broader coverage. A CSOP gives you a clean, tax-advantaged way to grant options at market value without tying the business in knots.
When to use this
- You don’t qualify for EMI (size, sector, control) but still want a tax-favoured option plan.
- You’re scaling and need a plan that can cover more people, not just a small core.
- Investors want a tidy pool and predictable leaver rules before the next round.
- Past “promises” need turning into real grants on a timetable you can live with.
What’s included
Plan design that fits your cap table. Pool size, exercise approach, vesting cadence, leaver outcomes that won’t blow up later.
CSOP rules and approvals. Drafted in plain English; board and shareholder papers prepared; HMRC ERS setup handled.
Valuation support. Materials for a defendable market value; short note founders and finance can keep.
Grant pack. Option agreements, grant letters, acceptance mechanics; register and minute-book updates.
Admin that sticks. ERS registration and the annual return taken off your plate; reminders so deadlines don’t creep up.
Pricing (fixed fees; bespoke available)
CSOP setup (rules + plan adoption + first grant batch) — from £2,250 (ex VAT)
Valuation support (market value pack) — from £650 (ex VAT)
ERS registration & annual return — from £350 (ex VAT)
Additional grant round / leaver & exercise pack — from £450 (ex VAT)
If your history is messy – multiple share classes, old promises, unusual articles, we’ll scope a bespoke bundle against our standard rates (£275/hr) and convert it to a single fixed fee you approve.
How we deliver
Discovery. Cap table today, who you want to include, and any investor asks.
Design & paperwork. Rules drafted; board/shareholder approvals readied; pool shaped to match reality.
Value & grant. Market value agreed and recorded; grants issued with clean documents.
Register & report. ERS registration done; option register updated; annual return scheduled.
Timeline
Inputs this week; first drafts follow quickly. Grants can usually be issued within a few working days once value and approvals are in hand. We set the calendar for ERS so nothing drifts.
Inputs we’ll need
- Current cap table (spreadsheet or platform export).
- Articles, any investor conditions, and past option promises.
- Proposed grantees, vesting ideas, intended grant dates.
- Finance contact for valuation data and ERS access.
FAQs
CSOP or EMI – how do we choose?
EMI offers generous tax treatment but has eligibility limits. If you don’t qualify-or you want broader coverage – CSOP is the tax-advantaged alternative. We’ll sense-check both against your facts and make a call you can defend.
Do options have to be granted at market value?
Yes, for CSOP the exercise price must be at market value to secure the tax advantage. We prepare the value support and keep a paper trail your accountant and investors will recognise.
What about leavers or early exercises?
The plan sets clear outcomes—what vests, what lapses, and how exercises work if someone leaves or there’s a takeover. We write rules you can use on a bad day, then keep the register and ERS in step so the story is tidy
Understanding CSOPs
A Company Share Option Plan lets you grant tax-advantaged options at market value when EMI isn’t available or you need wider coverage. Think scale-ups, groups, or sectors that fall outside EMI. With a CSOP you still motivate the team, but the paperwork—rules, grants, leavers—has to be tight or the tax advantage slips away.
We start with what’s real: today’s cap table, who you want to include, any old promises that need turning into actual paper, and the investor asks already circling your inbox. From there we shape pool size, vesting, and leaver outcomes that won’t blow up a round. Draft CSOP rules arrive in plain English. Board and shareholder approvals follow. ERS is set up and we diarise the annual return so you don’t miss it (HMRC expects it every year, by early July).
Price is not guesswork. We prepare the evidence you’ll need for market value and explain why it matters—no mystery acronyms, just numbers finance can defend. Grants are issued on dates you can live with; acceptance, lapse and exercise mechanics are written so they work on a bad day, not only in theory. If your articles need a light tweak, we fold that in so the plan and company law point in the same direction.
A quick example. A client had grown past EMI and wanted CSOP options for a broader group, including ops and support. We mapped the pool against hiring plans, agreed vesting that matched probation and promotion cycles, logged the valuation support, issued grants, and filed. No drama; just momentum.
Call it CSOP share options, CSOP options, or the full CSOP Company Share Option Plan—the point is the same: a plan people understand, grants that stand up in diligence, and admin that doesn’t wake you up at year-end. You end with rules that fit your business, registers that match reality, and a team that knows exactly what they’re working towards.
