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Unapproved options (UK)

Also called: non-tax-advantaged options, unapproved share options

In one line

UK share options that don't qualify for a tax-advantaged scheme, so the gain at exercise is taxed as income.

In plain English

When EMI or CSOP don't apply, companies grant 'unapproved' options. They work the same way but the spread at exercise is taxed as employment income, with National Insurance too.

If you were explaining it to a 5-year-old

A plain British toy voucher with no tax discount — using it is taxed like normal pocket money.

Why it matters when you sell

Unapproved options carry a heavier tax hit at exercise, a cost to factor in before exercising to sell.

Related terms

EMI option (UK)CSOP (UK)UK capital gains tax (CGT)Ordinary income (equity)

Put it to use

How to get liquidity (Europe)

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Sources

Primary references for this term: UK Government / HMRC (gov.uk). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.