Subject to meeting the conditions specified in CTA 2009, Pt. 12, Ch.3, the employer company will be entitled to a deduction for the purposes of corporation tax, for the accounting period in which the employee acquires shares pursuant to the exercise of a share option.

It is important to check that this relief will both apply, and can be accessed at the time of exercise. This should invariably be so in the case of CSOP schemes, but there are a number of conditions that must be met. These include, in relation to the shares acquired on exercise of options, that:

(a)the shares are ordinary shares, fully paid up and not redeemable;

(b)the shares are:

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