Comparison · Investing & Business · 2026/27
Company Share Option Plan (CSOP) vs EIS UK 2026/27
CSOP grants employees tax-advantaged share options as part of remuneration. EIS gives external investors upfront tax relief for direct investment in early-stage companies. This 2026/27 guide compares who each scheme is for and the tax treatment.
Key facts -- 2026/27
- • CSOP individual limit: GBP 60,000 of shares at grant value
- • EIS Income Tax relief: 30% up front
- • EIS annual investment limit: GBP 1m (GBP 2m knowledge-intensive)
- • EIS/CSOP CGT exemption qualifying period: 3 years
- • CSOP tax on exercise: none, if conditions met
- • Capital Gains Tax rates: 18% or 24% (2026/27)
Who Each Scheme Is For
CSOP is fundamentally an employee benefit -- a way for companies to grant equity upside to selected staff or directors without an immediate tax charge, aligning their interests with the company's growth. It does not raise new capital for the company.
EIS is fundamentally a fundraising and investor-relief mechanism -- external individuals invest cash directly into the company in exchange for shares and generous tax reliefs, providing the company with growth capital.
Worked Example: Two Different Roles
| Scheme | Who participates | Money flow |
|---|---|---|
| CSOP | Employee/director | No new capital to company |
| EIS | External investor | New capital raised |
Illustrative only -- consult a tax adviser for scheme-specific eligibility. Use the capital gains tax calculator to estimate CGT on a future disposal.
Side-by-Side Comparison
| Factor | CSOP | EIS |
|---|---|---|
| Purpose | Employee incentive | Fundraising/investment |
| Upfront tax relief | None on grant | 30% Income Tax relief |
| Individual limit | GBP 60,000 (options) | GBP 1m-2m/year |
| Downside risk | Asymmetric, limited | Full capital at risk |
| Typical user | Employees, directors | Angel investors |