HMRC has at last published its response to the recommendations made by the Office of Tax Simplification (OTS) for reducing the complexity of tax-advantaged share plans. The proposed changes are a very welcome move towards simplification and harmonisation, and for the most part do not involve radical change.

The one exception to this is the possibility that Company Share Option Plans (CSOP) will be abolished. To set the scene, the four plans affected by the proposals are all designed to facilitate the acquisition of shares by employees in their employing company: