Commentary on Sections Overview
3366.This Schedule, which is introduced in Chapter 8 of Part 7, deals with the rules relating to approved CSOP option schemes. The legislation relating to CSOP option schemes, which is contained in Chapter 8 of Part 7 and in this Schedule, is called “the CSOP code”, a term introduced in section 521. Chapter 8 of Part 7 deals with the tax exemptions available for participants in an approved CSOP option scheme.
3367.The legislation relating to these schemes derives from Schedule 9 to ICTA; many of the definitions are supplied by section 187 of ICTA.
3368.This Schedule contains further provisions relating to CSOP option schemes. After the introductory Part (Part 1) it deals with the following matters:
	it specifies the requirements that a CSOP option scheme must meet in order to be “approved” for the purposes of the CSOP code (in Parts 2 to 6);
	it deals with the procedural aspects of the approval of schemes and the withdrawal of approval (in Part 7); and
	it deals with supplementary matters (in Part 8).
3369.The majority of the provisions in this Schedule are therefore concerned with the various requirements that CSOP option schemes must meet before they may be “approved”. On this topic the general policy has been to place the various Parts in an order consistent with that to be found in the legislation relating to other share schemes. The various requirements have been placed in a different order from that found in Schedule 9 to ICTA. Part 2 of this Schedule deals with the general requirements that apply in all cases; Part 3 with the requirements relating to the eligibility of individual employees; and Part 4 with the types of shares to which schemes can apply. The following Parts then deal with requirements relating to share options (Part 5) and the exchange of options (Part 6).
3370.Where it seems helpful the opportunity has been taken to list the requirements relevant for a Part. This procedure is the same as that adopted in Schedule 2 for the SIP code and Schedule 5 for the EMI codes, where the procedure represents a development of layout in Schedule 8 and Schedule 14 to FA 2000.
3371.Share options are described as being granted rather than obtained in most contexts. This ties in with the terminology in EMI.
3372.Where appropriate references have been changed from “person” to “individual”.