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Taxopedia  ›  I  ›  Incentive Stock Option
I · Glossary

Incentive Stock Option

A US share option scheme — for UK tax it's typically a Non-Qualified Stock Option.

Incentive Stock Options (ISOs) are a US share option scheme. For UK-resident employees, ISOs don't get the special UK tax-advantaged treatment — they're typically taxed as employment income on exercise (subject to PAYE/NI), then CGT on disposal.

Related terms

Enterprise Management Incentive (EMI)Tax-advantaged share option scheme for SME employees — up to £250k per employee.Company Share Option Plans (CSOPs)Tax-advantaged share option plans for UK employees — up to £60k per employee.

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