HMRC-Ready CSOP Valuation Reports
409.AI helps UK companies prepare expert-reviewed CSOP valuation reports to support option exercise prices and HMRC advance agreement via form VAL230.
A Company Share Option Plan (CSOP) is a UK tax-advantaged share option scheme under which each employee can hold options over shares worth up to £60,000 at grant, with qualifying exercises free of income tax and National Insurance.
At a glance
| Report | CSOP valuation report |
|---|---|
| Summary | Expert-reviewed CSOP valuation reports to support option exercise prices, with VAL230 advance-agreement support for HMRC. |
| Price | From $3,499 |
| Jurisdiction | United Kingdom |
What is included
- Company information and valuation intake context
- Unrestricted Market Value (UMV) analysis to support the exercise price
- Methodology narrative and supporting rationale
- VAL230 advance-agreement support materials
- Expert-reviewed final valuation report
Frequently asked questions
What is a CSOP?
A Company Share Option Plan (CSOP) is a UK tax-advantaged share option scheme. Each employee can hold CSOP options over shares worth up to £60,000 at grant, and qualifying exercises are free of income tax and National Insurance, with capital gains tax applying to gains on sale.
How is a CSOP different from EMI?
EMI is generally the more generous scheme, with a £250,000 per-employee limit and more flexibility, but it carries company size and trade restrictions. CSOP has no company size cap, so it is often the route for larger companies, groups, or businesses in trades excluded from EMI.
Who can be granted CSOP options?
CSOP options can be granted to employees and to full-time directors working at least 25 hours per week. Individuals with a material interest in the company, broadly more than 30 percent of the shares, cannot participate.
Do I need to agree a valuation with HMRC before granting?
Unlisted companies can seek advance agreement of the share value from HMRC Shares and Assets Valuation using form VAL230 before granting. Advance agreement is not mandatory, but it is widely recommended because the exercise price must be at least the market value at grant.
What is the £60,000 CSOP limit?
Each individual can hold unexercised CSOP options over shares worth up to £60,000, measured by the unrestricted market value of the shares at the date of grant. The limit was doubled from £30,000 in April 2023.
What is the tax treatment of CSOP options?
When CSOP options are exercised between three and ten years after grant, no income tax or National Insurance is due on the gain at exercise. Capital gains tax applies to any gain when the shares are sold.
How long can I rely on an agreed valuation?
HMRC agreement letters state the period during which the agreed value can be relied on, typically around 90 days, so it makes sense to plan the grant promptly after agreement.
Is this tax or legal advice?
No. The valuation report organizes company-provided information into supporting documentation and should be reviewed with qualified tax and legal advisors.